Filing For Bankruptcy Protection After Closing A Business
More than half of small businesses close within a few years of opening. Meanwhile, closing a business with losses is one of the most financially disruptive events in a person’s life. Just as a disproportionate number of bankruptcy filings are by recently divorced people, people who have recently closed a business with losses also make up a substantial number of bankruptcy filers. Filing for bankruptcy can be a good way to protect yourself from heavy financial losses and move on with your life after an unsuccessful business venture, but if your bankruptcy filing is related to a recently closed business, the case could be more complicated, because there are so many creditors seeking to collect debts related to the business. If you have recently closed a business and are considering filing for bankruptcy, contact a Boca Raton bankruptcy lawyer.
The Olympus Pools Bankruptcy Saga
By the time James and Alexis Staten closed their business, Olympus Pools, they left plenty of unsatisfied customers in their wake. Olympus Pools was in the business of installing swimming pools on residential properties, but hundreds of customers filed complaints with the Florida Attorney General’s Office, alleging that Olympus Pools left half-finished swimming pools on their property, causing the customers to incur heavy financial losses.
Mr. and Mrs. Staten filed for bankruptcy after closing the company. Pursuant to the bankruptcy filing process, they disclosed their assets to a trustee. They said that they own a $3.5 million house in Pasco County, as well as the $1.5 million building where Olympus Pools used to operate. Meanwhile, the Staten family has moved out of Pasco County; both parents are working for insurance companies while their children attend school. They also told the trustee that other customers owe them more than $1 million for work that Olympus Pools completed. Although the Statens disclosed to the trustee that they are five percent owners of another company, Staycation Pools, Jordan Hidalgo, the founder of Staycation Pools, denies that Mr. and Mrs. Staten own a percentage of the company.
The first creditor meeting in the bankruptcy case took place in October 2021. More than 12 creditors attended the meeting, but none of the customers who have joined the case as creditors were in attendance. In total, 27 creditors, not all of them customers, are participating in the case.
One of the creditors is SCP Distributors, a company with which Olympus Pools conducted business, and has argued that the court should dismiss James and Alexis Staten’s bankruptcy case. SCP Distributors claim that the bankruptcy filing is just one of a long list of fraudulent dealings by the Statens. Meanwhile, James Staten and Olympus Pools are also facing lawsuits from the State Attorney General.
Contact a Bankruptcy Lawyer About Bankruptcy Protection After Closing a Business
Closing a business does not have to cause you disastrous financial losses. A bankruptcy lawyer can help you discharge some debts and settle others after closing a business. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.