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Accounting question re dissolved corporation filing
Well Mark, those were my questions to the Debtor as well but he wants to do
it I think more as a formality to drive the final stake through the heart of
the company.
Holly Roark
On Thu, May 12, 2011 at 12:51 PM, Mark T. Jessee wrote:
> What is the point of a corporate bankruptcy if the company is wound up and
> dissolved in the past tense? It is done and there are no more legal
> requirements for it to do anything other than file the final tax retuns if
> the receivalbes are uncollectable. Why expend the time and money to file a
> corporate chapter 7 if the corporation was not able to collect a debt while
> it was operating? Why would a trustee want to invest time and money to
> pursue an uncollectable debt if a chapter 7 petition was filed? The tax
> return has no relevance to the bankruptcy other than it confirms that the
> receivables are uncollectable and that the now dissolved corp should
> issue 1099c's to the deadbeat receivalbe obligees.
>
>
>
>
> Mark T. Jessee
> Law Offices of Mark T. Jessee
> "A Debt Relief Agency"
> 50 W. Hillcrest Drive, Suite 200
> Thousand Oaks, CA 91360
> (805) 497-5868 (805) 497-5864 (Facsimile)
>
>
>
>
> On Thu, 12 May 2011 11:25:10 -0700, Holly Roark wrote:
>
>
>
> I KNOW NOTHING ABOUT TAX. Your guidance is appreciated.
>
> Under California law, a dissolved corporation or limited liability company
> continues to exist for the purpose of:
>
> winding up its affairs;
>
> prosecuting and defending actions to collect and discharge obligations;
>
> disposing of and conveying its property; and
> collecting and dividing its assets. [Calif. Corps.C. 2010, 17354(a)]
>
> Such a corporation or limited liability company does not continue to exist
> for the purpose of continuing business except to the extent necessary to
> wind up its business. [Calif. Corps.C. 2010, 17354(a)]. The effect is
> that a dissolved California corporation or limited liability company can
> file a bankruptcy petition to liquidate but not to reorganize.
>
> Debtor liquidated company to the extent possible and paid off as many
> creditors as possible. There is one large creditor remaining, and
> receivable assets remaining that so far have been uncollectible. A
> certificate of dissolution was filed in April 2010, checking the box that
> says, " The corporation's known debts and liabilities have been paid as far
> as its assets permitted." Debtor wants to file Chapter 7 and allow a
> trustee to try to collect those remaining receivables and pay the large
> creditor to the extent possible.
>
> Accountant is preparing the "final" tax return for the business which is
> 2010. He tells me that after the return is prepared and filed the balance
> sheet will show "zeros" because of how they offset the assets and
> liabilities. I am not sure what that means with respect to the Chapter 7.
> The collectibles will still exist, as will the big creditor. Should debtor
> not file the final tax return prior to filing BK? Will filing the "final"
> tax return mean that there is nothing left to wind up or liquidate, meaning
> that it can't file the bk? Should he wait and let the estate file the final
> tax return? Or will the tax return have no effect on the Chapter 7?
>
> Thanks for your help.
>
>
>
> Holly Roark
> holly@roarklawoffices.com
> www.roarklawoffices.com
> Central District of California
> Consumer Bankruptcy Attorney
> 1875 Century Park East, Suite 600
> Los Angeles, CA 90067
> T (310) 553-2600
> F (310) 553-2601
>
> I'm riding in AIDS/LifeCycle 10, a 545-mile bike ride from San Francisco to
> Los Angeles,
>
> June 5-11, 2011, to raise money for the Jeffrey Goodman Clinic and other
> services for
>
> people with AIDS.
>
> You can make a donation online (or obtain a pledge form) at
> http://www.tofighthiv.org/goto/
> holly
> __o
>
> _`\
> (_)/ (_)
>
> SF * * * * * * * * * * * * * * * * * * * * * * 545 miles * * * * * * * * *
> * * * * * * * * ** * * * LA
>
>
>
> >
>
>
>
>
>
Holly Roark
holly@roarklawoffices.com
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
I'm riding in AIDS/LifeCycle 10, a 545-mile bike ride from San Francisco to
Los Angeles,
June 5-11, 2011, to raise money for the Jeffrey Goodman Clinic and other
services for
people with AIDS.
You can make a donation online (or obtain a pledge form) at
http://www.tofighthiv.org/goto/ holly
__o
_`\
The post was migrated from Yahoo.
charsetF-8;
format="flowed"
What is the point of a corporate bankruptcy if the company is wound up
and dissolved in the past tense? It is done and there are no more
legal requirements for it to do anything other than file the final tax
retuns if the receivalbes are uncollectable. Why expend the time and
money to file a corporate chapter 7 if the corporation was not able to
collect a debt while it was operating? Why would a trustee want to
invest time and money to pursue an uncollectable debt if a chapter 7
petition was filed? The tax return has no relevance to the bankruptcy
other than it confirms that the receivables are uncollectable and that
the now dissolved corp should issue 1099c's to the deadbeat receivalbe
obligees.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
On Thu, 12 May 2011 11:25:10 -0700, Holly Roark wrote:
I KNOW NOTHING ABOUT TAX. Your guidance is appreciated.
Under California law, a dissolved corporation or limited liability
company continues to exist for the purpose of:
winding up its affairs;
ions;
disposing of and conveying its property; and
collecting and dividing its assets. [Calif. Corps.C.
Such a corporation or limited liability company does not continue to
exist for the purpose of continuing business except to the extent
necessary to wind up its business. [Calif. Corps.C. 2010,
17354(a)]. The effect is that a dissolved California corporation or
limited liability company can file a bankruptcy petition to liquidate
but not to reorganize.
Debtor liquidated company to the extent possible and paid off as many
creditors as possible. There is one large creditor remaining, and
receivable assets remaining that so far have been uncollectible. A
certificate of dissolution was filed in April 2010, checking the box
that says, " The corporation's known debts and liabilities have been
paid as far as its assets permitted." Debtor wants to file Chapter 7
and allow a trustee to try to collect those remaining receivables and
pay the large creditor to the extent possible.
Accountant is preparing the "final" tax return for the business which
is 2010. He tells me that after the return is prepared and filed the
balance sheet will show "zeros" because of how they offset the assets
and liabilities. I am not sure what that means with respect to the
Chapter 7. The collectibles will still exist, as will the big
creditor. Should debtor not file the final tax return prior to filing
BK? Will filing the "final" tax return mean that there is nothing left
to wind up or liquidate, meaning that it can't file the bk? Should he
wait and let the estate file the final tax return? Or will the tax
return have no effect on the Chapter 7?
Thanks for your help.
Holly Roark
holly@roarklawoffices.com
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
I'm riding in AIDS/LifeCycle 10, a 545-mile bike ride from San
Francisco to Los Angeles,
June 5-11, 2011, to raise money for the Jeffrey Goodman Clinic and
other services for
people with AIDS.
You can make a donation online (or obtain a pledge form) at
http://www.tofighthiv.org/goto/holly
__o
_`\
start="4ebsn6sqsg4k@webmail.mysuperpageshosting.com"
charsetF-8
What is the point of a corporate bankruptcy if the company is wound up and
dissolved in the past tense? It is done and there are no more legal
requirements for it to do anything other than file the final tax retuns if the
receivalbes are uncollectable. Why expend the time and money to file a
corporate chapter 7 if the corporation was not able to collect a debt while it
was operating? Why would a trustee want to invest time and money to
pursue an uncollectable debt if a chapter 7 petition was filed? The tax
return has no relevance to the bankruptcy other than it confirms that the
receivables are uncollectable and that the now dissolved corp should
issue 1099c's to the deadbeat receivalbe obligees.
Mark T. JesseeLaw Offices of Mark T. Jessee"A Debt Relief
Agency"50 W. Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805)
497-5868 (805) 497-5864 (Facsimile)
On Thu, 12 May 2011 11:25:10 -0700, Holly Roark wrote:
The post was migrated from Yahoo.