untellectual property rights and unperfected liens

[howtoplan]

[StartingOver08]

Did you borrow money from the bank under the company name and personally guarantee the repayment?

If so, then your personal liability will be released once you are discharged in your personal Ch 7. However, the debt is still owed by the company. As long as that company has assets the bank can sue the company to recover repayment. (They can sue even if the company does not have assets - they can just get a judgment and recover sometime in the future).

[howtoplan]

We borrowed money personally with the company guaranteeing it. The copyright is held by the corporation. The only source of income is derived from the copyrighted software. Do you think the company should file chapter 7? The lawsuit make the company upside down but if we keep operating the bank will take everything. Our personal filing won't do us much good after we dont have an income any longer.

[StartingOver08]

Did you file pro se or with an attorney?

If you have an attorney, ask him what a BK would do for the company. You will need to know the risks involved and whether you should file a Ch 7 or Ch 11 or not file at all. Hopefully your attorney is well versed in business BK's too.

Read this link, it has some interesting information about 'attachment law' and intellectual property. It specifically references software: http://www.whitecase.com/publication...ublication=258

Here is another link that may help you because it is written to protect the commercial interests of a bank/lender, see if there are any 'holes' you can use against the lender in your specific situation without filing BK for the company: http://www.eapdlaw.com/files/News/6e.../media.207.pdf

One more article for you to peruse: http://www.law.com/jsp/ihc/PubArticl...=1202426881767

The above article is also from the lenders POV, but it may help you determine what to do in your specific situation.

My concern would be: Would the trustee try to take the income from the company to satisfy the debt? You really need a good attorney in your situation.

[howtoplan]

Thanks a lot for your very detailed response. Your kindness is truly appreciated. We filed with an experienced attorney, infact we have four attorneys but the intellectual property rights and the copyright issue, was just discovered by myself. Now I'm in the process of questioning the attorneys, for their opinions.

[AngelinaCat]

What state are you located in? I may be able to refer you to a copyright attorney, but I would do it via PM.

[howtoplan]

Michigan. As it turns out, the attorneys have confirmed it makes a difference in our case towards the creditor. I guess it always pays to investigate and question the attorneys. I feel like we achieved a mini victory today (ok now I'm knocking on wood )

[StartingOver08]

Wow...that's good news! It really pays to research when you have a complicated case.