Florida Bankruptcy Attorney Blog

A company in Orlando, Mirabilis Ventures, Inc., pulled off one of the biggest payroll tax frauds in United States history. As a result of the scheme the company was forced to file bankruptcy in 2008. The battle is now being fought in federal court as to who will be recovering the lost money resulting from these schemes of CEO Frank Amodeo. Amodeo pleaded guilty to fraud and was sentenced to 22 years in prison. The case appears to be an interesting combination of federal criminal and bankruptcy law.

Prosecutors and the IRS have been attempting to get the company itself (as opposed to the CEO) to plead guilty to tax fraud, and these ages are fighting the receiver/trustee for this admission in an ultimate fight over who will be controlling the recovery of the fraudulently conveyed funds. Generally this would be an issue for bankruptcy courts to decide but there is a valid argument for the other agencies to have charge of the restitution aspects of this case. A careful analysis of the caselaw and arguments used on both sides is more than can be discussed here, but would prove interesting.

Moving around Orlando, residents will likely have noticed an increase in the road signs offering services such as lawn care and maintenance, and homes for sale. Included among the signs are often advertisements for legal work. These road signs often spell bad news. Not only do they reflect a failing economy, but many of the companies advertising are scams. These signs are also illegal according to Orlando ordinances.

You almost certainly will not talk to a lawyer if you respond to one of these advertisements. There are even signs throughout Orlando that have advertised bankruptcy services. Usually these small road sign advertisements are not lawyers, and the advertiser has no more experience with the bankruptcy code than the typical layperson. The most they could do is sloppily prepare your petition in a way that is inadequate for the bankruptcy legal system. A very high percentage of these petition preparation petitions are dismissed from the bankruptcy courts. None of these services are able to represent you before the bankruptcy judge or the trustee.

We have even had clients come to us asking whether we could sue these services after their bankruptcy was dismissed due to inadequate preparation.

As a result, we invite our readers to beware of these advertisements and seek the services of a competent, licensed, bankruptcy lawyer that will be able to handle your petition and address the numerous problems that could arise. Here are only some of that problems that could arise in a typical bankruptcy: creditor or trustee alleges bankruptcy fraud, creditor files for relief from the automatic stay, creditor seeks adequate protection payments, trustee seeks to seize your assets which could have been saved if exemptions had been properly applied, among numerous other issues. Only a bankruptcy attorney/lawyer can represent you on these issues before the judge and the courts, and these issues are not uncommon in bankruptcies.

It pays to seek out a bankruptcy lawyer for all bankruptcy and foreclosure needs, especially since we offer payment plans and discounts depending on your circumstances.

Retail establishments that specialize in video rentals and sales, as well as CD sales and rentals continue to be beat hard by a combination of recession and technological advancement. As more and more people in every generation continue to grow more savvy about use of the personal computer as well as downloading software and video products, video retail establishments like Blockbuster, Hollywood Video, etc... continue to go out of business or flirt with Chapter 11/7 Bankruptcy. Blockbuster's General Counsel recently announced that the company could not rule out the possibility of such a filing. Electronic and video products, unlike clothing and furniture, are often convenient to the consumer to purchase online. People often need to inspect the clothing and furniture they purchase. Not so for video programs and software. There is nothing in the nature of video to inspect before purchase, as the very experience of watching the video is what is purchased. People obtain information on whether the purchase is worthwhile through critics or other third parties. Clearly, the video industry is probably not a good place to be investing your money, and bankruptcy or corporate dissolution may become prominent in this area for some time to come. Prevailing economic conditions do not help either.

Many have been asking how likely it is that British Petroleum will declare bankruptcy. As with individuals, often corporations have other options to exhaust before filing in Chapter 11. Large oil companies like British Petroleum often have an enormous amount of assets, which is of course also reflected in their market capitalization. BP could sell its debt, could reduce capital expenditures, it could curtail its 10 billion a year in dividends, or tap into its tangible assets. As a result, Chapter 11 is not likely for a company as wealthy and established as BP. Chapter 7, which is straight liquidation of its assets, is likely not even on the radar screen. Contrast this with GM where the balance sheet and available resources were far more scarce, making a reorganization of that company necessary.

Bankruptcy is hardly ever an option for most people or entities until liabilities vastly outweight assets, because assets can be used to develop systems, programs, or opportunities for reorganization prior to the additional legal helps that are available. Especially with large corporations, lack of confidence may also result from the filing of the petition itself.