Dear Fred and Sally,.
Added on - 18 Sep 2019
Dear Fred and Sally,Thank you for appointing me as an attorney to assist you inlegal actions that can be takenagainst Don Check Cashing, the church, Jane and what will be needed to proceed with thebankruptcyAs against DonOur legal defence will demonstrate that Don Check Cashing, neglected to act in a businesssensible standard. In spite of the fact that the checks were composed to him, the signatories onthe check were not the names recorded and it was also not your signature, is not genuine orforgery under section 1-201 under the Uniform Commercial Code[ CITATION USG5 \l 1033 ].Jane was bookkeeper for the organization. Both you and Sally were the approved signatories forthe organization. Jane produced a few checks payable to Don, to reimburse her bettingobligation. A party's entitlement to uphold a negotiable instrument is defended by extortion inthe factum, imitation, material change. In the event that Jane was not approved to sign on behalfof Fred and Sally, you won't be at risk for the check. Bank, will have explanations that the clientdoesn't advise the bank within specified time, so, bank cannot be obligated for the fabrication.ChurchAs of Church it will be difficult to prove Church’ malafide intent. Again, the Church was theholder in due course and had no knowledge as to the forgery of check. But, under section 3-103(7), of Uniform Commercial Code, you and Sally could also prove that you were inmaintenance of the business and took due care which an ordinary man is supposed to and this
will help you, since, bank will initiate the refund for the loss in lieu of holding the depositorybank being made liable for the failure to verify the check validity.Civil ClaimsSeveral checks were forged by Jane and written to Don. Jane has also violated fiduciary duties tobusiness, by embezzlements of funds and also fabricating statements, so she can be sued for thebreach of fiduciary duty in the Court of Law and claim of damages is a plausible option.BankruptcyThe available forms of bankruptcy are outlined here, where in Liquidation, individuals give upnon-exempt assets and in reorganization under Chapter 11[ CITATION USG3 \l 1033 ],businesses are nothing but the restructured debt where debts are repaid with retention of assetsand some creditors gets paid in full with interest. But, if filed under Chapter 7[ CITATIONUSG2 \l 1033 ]then there will be no discharge on debts, it is due to the fact that the businessceases to exist in this case.Implication of bankruptcy on business assetIf you choose to file a Chapter 7 bankruptcy then the whole of the business asset gets liquidatesbut, if Chapter 11 is chosen thenrenegotiating debt repayment subsides with a change on theentire corporate structure of the business.Implications of bankruptcy on personal assets