Small Business Bankruptcy Questionnaire

General Questions

Step 2 of 3

Your answers to these general questions will help me to understand your unique situation, including what you have done or has been done to you. Many people make decisions that do not lead to problems outside bankruptcy, but in a bankruptcy those same innocent decisions can be disastrous. Based on your answers I will customize my advice with the goal of helping you avoid problems, if possible. I realize this is a lot of information, but accurate information will be your best friend. A friend of mine says “garbage in, garbage out”. He is correct because if I get the wrong information from you I will most likely give you the wrong legal advice.

I watched the short educational videos about the bankruptcy process and players. These videos are focused on individuals, but are instrumental in helping you undersand how bankruptcy works. Therefore please watch all 9 short videos before sending this form to our office.*

Yes
No

THE FOLLOWING ARE GENERAL QUESTIONS REGARDING YOUR COMPANY'S CURRENT SITUATION. THIS DISCUSSION IS NOT INTENDED TO ADDRESS YOUR PERSONAL LIABILITY FOR ANY DEBTS. YOU ARE WELCOME TO FILL OUT THE PERSONAL BANKRUPTCY FORM FOR THAT DISCUSSION.

Is there an emergency requiring immediate filing?*

Yes
No

If so, why?

Are creditors contacting the company demanding payment?*

Yes
No

Is a law suit pending or completed?*

Yes
No

What is the status of the lawsuit? When was it served or approximately when was it completed and a judgment entered?

Is a landlord trying to evict the company or a creditor threatening to put a receiver in place?*

Yes
No

If so, did the landlord obtain a Forcible Entry & Detainer Order? Or the creditor obtain a court order appointing a receiver? If so, when?

Are there any co-signers for any company debts?*

That includes you.

Yes
No

Briefly explain who the co-signers are and what they guaranteed to pay.

THE FOLLOWING QUESTIONS RELATE TO CERTAIN ISSUES THAT DETERMINE WHETHER OR NOT IT IS APPROPRIATE TO FILE A BANKRUPTCY AND, IF SO, WHEN TO FILE.

In the last four years did the Company sell or transfer any property or use property as collateral for a loan (such as land, cars, businesses or any items of value) to a shareholder/officer/director?*

Yes
No

Please Explain

In the last two years did the Company sell or transfer any property or use property as collateral for a loan (such as land, cars, businesses or any items of value) to someone WHO IS NOT a shareholder/officer/director?*

Yes
No

Please Explain

In the last twelve months has the company paid any shareholder/officer/director other than their regular salary?*

Yes
No

Please Explain

Is the company in the middle of a conflict with any shareholder/officer/director?*

Yes
No

Please Explain

Are there any judgments or threatened actions against the Company for destruction of property or for injury inflicted?*

Yes
No

Please Explain

Does the Company have control over any retirement or other employee benefits?*

Yes
No

Please Explain

Does anyone owe the Company money or the Company has a right to any assets? Explain even if the Company never expects to collect the money or receive the asset.*

Yes
No

Explain how much the Company is owed or what rights it may have.

Does the Company have a right to sue anyone for anything (this includes theft, vehicle accidents or any other type of right)?*

Yes
No

If so, explain what for and how much the Company might be owed.

Does the Company owe any money to a shareholder/officer or director?*

Yes
No

How much does the Company owe to officers/directors or shareholders?

In the two years has the Company paid officers/directors or shareholders back any loan?*

Yes
No

How much did the Company repay officers/directors or shareholders in the past two years?

If this is a "yes" we must discuss the ramifications.

Do you understand that every debt the Company owes or might owe must be listed in the bankruptcy?*

Understand that only the debts you owe on the day of filing the bankruptcy will be dealt with in the bankruptcy. So any new debts you incur after bankruptcy will be your obligation.

Yes
No

CREDIT CARDS, BANKS AND OTHER DEBTS:

Approximate total of secured debts.*

Secured debt is debt that is guaranteed by an asset. Common examples of secured debt are a mortgage and a car loan.

Approximate total of unsecured debts.*

An unsecured debt is any type of debt or general obligation that is not collateralized by a lien on specific assets of the borrower.

Does the Company have any credit cards?*

Answer "yes" if the Company had credit cards in the past that were not paid off. Answer "yes" even if the creditor "wrote off" the debt. To write off a debt does not mean the debt is gone, it means the creditor will mostly likely sell it to a debt collector.

Yes
No

Approximately when were company credit cards last used.*

You only need to provide the year and approximate date and month. It is okay to guess as to the day and month, but not the year.

In the last 6 months were they any charges/cash advances/balance transfers of more than $500 on a single credit card?*

Yes
No

Changes on any one card of more than $500.

Briefly explain how much was changed and how the funds were used.

Was a store credit card used to purchase expensive items at that store and the Company still owes money on that credit card? For instance: financing a computer at Best Buy using the Best Buy credit card.*

Yes
No

List the items charged on store card, include the fair market value and how much is still owing on the credit card.

We will talk about secured debts.

If bankruptcy is in your Company's future do you understand that everyone must stop using credit cards now?*

This is very important.

Yes
No

Where does the Company bank?*

BEWARE: I DO NOT RECOMMEND THAT ANYONE BANK AT WELLS FARGO IF THEY ARE CONSIDERING BANKRUPTCY (THEY WILL FREEZE YOUR BANK ACCOUNTS).

Does the Company owe any money to its current bank (credit cards, car loans)?*

Yes
No

Does the Company owe federal or state taxes?*

Yes
No

Back taxes: list who is owed, approximately how much and for what tax year.

Do you understand that the principals of the company may be liable for unpaid taxes.*

Yes
No

It is important that officers, directors and/or shareholders obtain their own legal advice regarding personal obligations to pay company debts, including unpaid taxes.

In the last 5 years were the Company's tax returns filed late?*

Yes
No

In other words, the returns were filed after the date they were due, including extensions.

List date of the returns(s), approximate amount owed and when the return(s) was actually filed.

For instance: 2013 federal return, no extension, filed November 2014. Owe $2,400.

Were any credit cards used to pay taxes in the last two years?*

Yes
No

When and how much was charged on a credit card to pay taxes?

Has the IRS/or any state taxing authority garnished Company assets or recorded a lien? A lien is a document recorded with the County Recorder’s office.*

Yes
No

Garnishment for back taxes or liens. Explain the year the taxes were due, when they were filed and how much was garnished or liened.

Does the Company have any loans with a credit union?*

Beware of an cross-collateralized accounts with the credit union.

Yes
No

Does the Company have any outstanding fines or penalties? (e.g.: court fines or tickets)*

If so, these may not be discharged in a bankruptcy.

Yes
No

Does the Company have any leases on anything (cars, equipment, land)?*

Yes
No

Leases

What is the Company leasing: equipment, commercial property, vehicle, or other?

HOME, LAND AND VEHICLES

Does the Company own any real property (business, home, land or timeshare) anywhere in the world?*

Yes
No

Describe (e.g. 12,000 sq foot industrial center):*

How much is the property worth at this time and in its current condition?*

The name(s) on the title of the real property:*

Are there any loans on this property?*

Yes
No

Name of first Lender.*

What is the total amount owed to the first lender?*

Is the Company late on payments to the first lender?*

Yes
No

Approximately how much is owed to the first lender in order to being the loan current?*

Is there a second lender on this property?*

Yes
No

Name of second lender.*

Debt owed to second lender.*

Is the Company late on any payments to the second lender?*

Yes
No

Payment arrears to second lender?

How much must you pay in order to bring the payments current?

Are there any other loans on this property?*

Yes
No

Name of third lender:*

Total amount owed on any other loans secured on this property*

Is the Company late on any other mortgage payments besides your first and second mortgages?*

Yes
No

How much would the Company need to pay in order to bring the others debt, not including the first or second mortgages, current?

Is there a foreclosure or trustee’s sale pending?*

Yes
No

If so, what is the date and time of foreclosure?*

If there is a trustee's sale pending, please provide us a copy of trustee sale documents.

**It is your responsibility to confirm the trustee sale date and at all times to keep track of that date and any postponements; including the entire time the bankruptcy is pending. This office will not monitor the date of sale for you, but we be happy to answer your questions regarding the trustee sale process.

Did anyone else sign the loan with the Company?*

Yes
No

If so, who else signed the loan on this property?*

If so, do you understand that those individuals have personal liability for the debt because the Arizona anti-deficiency statute may not protect them from a deficiency action.*

VERY IMPORTANT!

Yes
No

Is there a homeowner's association?*

Yes
No

Does the Company own a second property, land or timeshare?*

Yes
No

Fair Market Value of the second property?*

The name(s) on the title of the house or land of the second property:*

Are there any loans on this second property?*

Yes
No

First Lender on the second property:*

Debt Owed*

If the payments are not current - how much is due in order to bring the loan current?

Name of the second lender of the second property*

What is the total amount the Company owes to the second lender?*

If the payments are not current - how much os owed to bring the loan current?*

Name of third lender for the second property.*

Debt owed to third lender*

If the payments to this lender are delinquint - how much to bring this(these) loan(s) current?

Is there a pending foreclosure or trustee’s sale on this second property?*

Yes
No

If so, what is the date and time of foreclosure:*

Is there a homeowner's association on this second property?*

Yes
No

Are the homeowner's association payments current on this second property?*

Yes
No

When was the last payment made?

How much is owed and for how many months?

Does the Company own a third property? (e.g. house, land, timeshares, etc)*

Yes
No

Describe the third property - such as is it raw land, a timeshare, summer house?*

Fair market value:*

Debt owed:*

Does the Company own a fourth piece of real estate? (e.g. house, land, timeshares, etc)*

Yes
No

Describe the fourth property:*

Fair market value:*

Debt owed:*

Does the Company own a fifth piece of real estate? (e.g. house, land, timeshares, etc)*

Yes
No

Describe fifth property:*

Fair market value:*

Debt owed:*

VEHICLE INFORMATION

List all vehicles & equipment in the Company's name.
List all debts on any of those vehicles.
List the fair market value of each vehicle using the resources below.

Resources for fair market value: www.kbb.com (private party value) or www.edmunds.com or www.NADA.com I cannot give you good advice without an accurate fair market value.

Does the Company own any vehicles? This includes both vehicles the Company is paying for and those that are completely paid off.*

Yes
No

Do not list leased vehicles.

Description and year of vehicle number one.*

Name(s) on the title of vehicle number one.

This information should be on the registration.

Month and year vehicle number one was purchased*

Fair Market Value of vehicle number one*

Make sure to use www.KBB.com, www.Edmunds.com or www.NADA.com

Debt Owed*

Does the Company own a second vehicle or equipment?*

Yes
No

Description and year of vehicle number two*

Name(s) on title of the second vehicle.*

Year and month second vehicle was purchased*

Fair market value of second vehicle.*

Make sure to use www.KBB.com, www.Edmunds.com or www.NADA.com

Total amount owed on second vehicle*

Does the Company own a third vehicle?*

Yes
No

Description of third vehicle*

Name(s) on the title of the third vehicle.*

Month and year third vehicle was purchased*

Fair market value of third vehicle*

Make sure to use www.KBB.com, www.Edmunds.com or www.NADA.com

How much is owed on the third vehicle?*

Does the Company own a fourth vehicle?*

Yes
No

Description of fourth vehicle*

Name(s) on the title of the fourth vehicle.*

Month and year fourth vehicle was purchased*

Fair market value of fourth vehicle*

Make sure to use www.KBB.com, www.Edmunds.com or www.NADA.com

How much is owed on the fourth vehicle?*

Does the Company own a fifth vehicle?*

Yes
No

Description of fifth vehicle*

Name(s) on the title of the fifth vehicle.*

Month and year fifth vehicle was purchased*

Fair market value of fifth vehicle*

Make sure to use www.KBB.com, www.Edmunds.com or www.NADA.com

How much is owed on the fifth vehicle?*

Of the current vehicles, did the Company refinance any vehicle after it was originally purchased?*

Yes
No

Refinancing a vehicle includes a title or registration loan. Which vehicle, who is the lender and how much are they owed?

Did the Company finance any of these vehicles with a credit union?*

Yes
No

Name of credit union and list other debts owed to that credit union.

ASSETS, INCLUDING BUSINESSES:

Does the Company have any interest in any business that is operating today?*

This includes a business that does not have a formal LLC or corporate name "sole proprietorship".

Yes
No

Briefly describe the business.*

What would a third party pay for that interest in the business?*

Normally you can value a business by subtracting liabilities (debts, including leases) from assets (including accounts receivable). Just provide us with a general guess.

Does that business have any assets, inventory, or contracts?*

Yes
No

Briefly describe, make sure to include accounts receivable, etc.*

Does that business have any leases on anything (cars, equipment, land)?*

Yes
No

What property is leased?*

Do you understand that by the Company filing for bankruptcy its surrenders its ability to control that business?*

This result will differ if filing a chapter 11.

Yes
No

Did the Company have any interest in any business in the last six years, even if the business is no longer in operation?*

Yes
No

Briefly describe the business.*

Does the Company have stocks, bonds or mutual funds?*

Yes
No

Please Describe

NOTE: it is very important to make absolutely certain that your retirement accounts are ERISA qualified. You can talk to your employer, HR, or plan administrator, or the word ERISA may be on your plan summary..

MISCELLANEOUS

In the last twelve months were there any bounced checks which have not been paid?

Yes
No

Does the Company have an off-site storage unit?*

Yes
No

What items are in that storage unit. Include their fair market value

In the last two years was any property, equipment, vehicles or accounts receivable used as security for a loan?*

Yes
No

What items were used as collateral for a loan? Make sure to include the fair market value of the item and the total debt owed.

IMPORTANT: IF ANY OF THE FOLLOWING SITUATIONS APPLY TO YOU THEN WE WILL NEED TO DISCUSS THE CONSQUENCES OF FILING FOR BANKRUPTCY.

Were all the loan applications signed in the last 10 years truthful?*

Yes
No

Are there any judgments or threatened lawsuits for destruction of property or for injury inflicted (like DUI)?*

Yes
No

Please Explain

Do you and the other officers/directors understand that any debts from obtaining money, property, or services by fraud may survive the bankruptcy?*

Yes
No

Do you and the other officers/directors understand that debts based on fraud while acting in a fiduciary capacity (such as embezzlement) may survive the bankruptcy?*

Yes
No

Thanks, only one more section to go!

Please proceed to the final step of this financial Information and we will have all we need to schedule your free phone consultation.

Diane L. Drain | Arizona Bankruptcy Lawyer

Small Business Bankruptcy Questionnaire

Company Bankruptcy Questionnaire

General Information

Step 1 of 3

GENERAL INFORMATION FOR A BUSINESS

Information about you:

General Information

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General Questions

Step 2 of 3

THE FOLLOWING ARE GENERAL QUESTIONS REGARDING YOUR COMPANY'S CURRENT SITUATION. THIS DISCUSSION IS NOT INTENDED TO ADDRESS YOUR PERSONAL LIABILITY FOR ANY DEBTS. YOU ARE WELCOME TO FILL OUT THE PERSONAL BANKRUPTCY FORM FOR THAT DISCUSSION.

THE FOLLOWING QUESTIONS RELATE TO CERTAIN ISSUES THAT DETERMINE WHETHER OR NOT IT IS APPROPRIATE TO FILE A BANKRUPTCY AND, IF SO, WHEN TO FILE.

CREDIT CARDS, BANKS AND OTHER DEBTS:

HOME, LAND AND VEHICLES

VEHICLE INFORMATION

ASSETS, INCLUDING BUSINESSES:

MISCELLANEOUS

IMPORTANT: IF ANY OF THE FOLLOWING SITUATIONS APPLY TO YOU THEN WE WILL NEED TO DISCUSS THE CONSQUENCES OF FILING FOR BANKRUPTCY.

Thanks, only one more section to go!

Financial Information & Monthly Budget

Monthly Expenses

Monthly Income

Additional issues:

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