Privately owned business has family working under the table for years and filing taxes improperly. They have bought land and put in under a family members name so that they can move the business and then sign it over to a relative so that they can file for bankruptcy and not have to pay back anything. Even though it will not be legally their company they will still be working and collecting money. Is this something big enough for me to report?
Business debt has different implications depending on how the business is structured. In some cases, you may be personally liable.
Small business bankruptcy options include Chapter 7, 11, and 13, and depend on the business structure and the amount of the debt(s).
by attorney Keith W. Harvey
In a voluntary chapter 11 case, the debtor shall state in the petition whether the debtor is a small business debtor. Fed. R. Bankr. P. 1020 (a).... more