My wife and I own 50/50 a Talent Agency that is an S Corp. We are considering filing personal bankruptcy (chapter 7 or 13), due to a downturn in the economy. We are 100% commission based. All of our income comes from the S Corp. We have one CC that is in the company name and is backed by our personal credit. Everything is on a contract basis. Our client contacts us for entertainment, we use our knowlege to find the right talent and then put together a contract between the client and artist (independant contractor), "through Artists Agent", (our company) and take a commission after the performance date has played once all of the clients monies are in. Prior to the performance date we take a deposit (from the client) that goes into a "Trust" account before we sign the Client and artist contracts. Some artists are paid a deposit from the funds held in trust and others are paid after the "playdate". Somtimes the clients money is refunded due to unforseen events and somtimes the client pays more than is contracted due to overtime charges (extra perfromance time requested at the actual performance).
Question 1. Does either the client or the artist have to listed as a creditor on the matrix? This is a major concern as we will loose our clients and artists if the trustee sends out notices to either.
Question 2. Because we have personally backed items partially used for business that the business has listed on a depreciation schedule (namely an RV) will that keep us from being able to discharge these items on the personal side. Do I need to get the RV off of the Business depreciation schedule - or since I owe more than it is worth, will they let me discharge it on the personal side anyway since it is in a personal names and credit?
Question 3. We have a D/B/A that is trademarked and owned by the corporation. Everyone knows us by our D/B/A and I would not want to lose it. Should I transfer the trademark ownership to myself or someone else?
Question 4. Since we are 100% commission based in a down economy, I cannot forcast what the future will be in dollars and cents. How is that handled in a BK?
We have no inventory and are much like a real estate broker in the way we do our business - by the contract - handle the transaction and collect a fee at the end.
We have never been late on any payments but are living on borrowed funds hoping the economy will turn around before it is too late.
Any advice would be greatly appreciated
Thanks
Question 1. Does either the client or the artist have to listed as a creditor on the matrix? This is a major concern as we will loose our clients and artists if the trustee sends out notices to either.
Question 2. Because we have personally backed items partially used for business that the business has listed on a depreciation schedule (namely an RV) will that keep us from being able to discharge these items on the personal side. Do I need to get the RV off of the Business depreciation schedule - or since I owe more than it is worth, will they let me discharge it on the personal side anyway since it is in a personal names and credit?
Question 3. We have a D/B/A that is trademarked and owned by the corporation. Everyone knows us by our D/B/A and I would not want to lose it. Should I transfer the trademark ownership to myself or someone else?
Question 4. Since we are 100% commission based in a down economy, I cannot forcast what the future will be in dollars and cents. How is that handled in a BK?
We have no inventory and are much like a real estate broker in the way we do our business - by the contract - handle the transaction and collect a fee at the end.
We have never been late on any payments but are living on borrowed funds hoping the economy will turn around before it is too late.
Any advice would be greatly appreciated
Thanks