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How to put an end to a debt settlement company?

Los Angeles, CA |

While there are so many scam debt settlement companies, my company has committed to providing real debt reduction to my clients. My company has been settling a lot of debts. However, I made a mistake that I had used money which clients gave me to use for paying their creditors whiling running my business. It sums about $400,000 and I am unable to pay back. My company cannot thrive any longer. How can I close my business gracefully? I thought about a corporation bankruptcy chapter 7, but it seems not a good idea to bring my problem to legal authority. Please help.

Attorney Answers 3

Posted

It seems that you already know the problem, which is that you have used other people's money without permission. I think that your best option at the moment is to work with a live attorney that you pay to focus on solving your problem. You might have both civil and criminal issues to resolve here. You will likely have to deal with a legal authority at some point.

Good luck.

The above is not intended to be legal advice, but may be used for general information. Please contact an attorney for specific help tailored to your needs. www.figgardenlaw.com

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Posted

This is not a do it yourself project, and "gracefully" is the least of your problems. You should expect both civil lawsuits and possible criminal prosecution. You probably cannot dissolve the corporation since you cannot declare that all the company's debts have been provided for.

Get the best attorney you can with the money you have left.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

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Posted

I believe you asked substantially the same question six days ago. From the scope of your question, I believe your question goes beyond the scope of a simple answer here on Avvo. There are many really fine lawyers here on Avvo who practice law in Los Angeles. Rather than repost your question on a public site, I suggest that you consult with and retain a really good lawyer immediately. Good Luck.

*Scott G. Nathan has been licensed to practice law in California since 1983. The information presented here is general in nature and is not intended, nor should it be construed as legal advice for any particular case or matter. This posting does not create any attorney-client relationship with Scott G. Nathan or my law firm. For specific advice about your particular situation, you should consult with an attorney immediately.

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