You Might Want to Tweet About It Before the Courts Take Away Your Social Media Accounts
#bksocialmedia. In a new twist of bankruptcy rulings, a Texas court ordered a corporate debtor to relinquish to his partner his possession and control of the social media accounts associated with their small business. In 2014, the business, Tactical Firearms, was in bankruptcy, and the two founding partners and former friends found themselves at odds with who owned the social media accounts, Facebook and Twitter.
While the former majority owner of Tactical Firearms argued the social media accounts were personal accounts and could not be included as property of a bankruptcy estate, the courts found evidence to suggest otherwise.
In a final ruling, the Texas court ruled that the social media accounts belonged to the business, setting an interesting precedent as to the role of social media accounts in bankruptcy.
Bankruptcy for Small Businesses
The court’s ruling in the Texas case is just one example of what might be litigated during a bankruptcy for a small business. In today’s tech world, what virtual assets can be included in a bankruptcy is as equally important as what assets can or cannot be included in a brick and mortar location.
If you are a small business owner who is incurring a lot of debt and unable to pay it back, you may want to think about filing for bankruptcy. Bankruptcy can help you eliminate your personal responsibility for business debt, reorganize the debt to keep your company viable, or liquidate the company. But before you file for bankruptcy, you need to consider which bankruptcy option is best for you- Chapter 7, Chapter 11, or Chapter 13- and if you should file a personal bankruptcy or a business bankruptcy.
Deciding which type of bankruptcy to file depends on a number of factors:
- Are you personally liable for your business debts?
- Is your business structured as a sole proprietorship, general partnership, corporation, or LLC?
- How much debt do you have and what type of debt is it?
- Do you want to keep your business running or close it?
- What involvement does your spouse have in your business?
- Is bankruptcy the right solution for you?
When it comes to filing bankruptcy for small businesses, every situation is different. In order to get a thorough understanding of which bankruptcy is right for you, or if there is a better solution for your particular situation, it is important to get legal advice from an experienced bankruptcy lawyer.
The East Bay’s Khan Law can help you decide on a solution to free you from the stress and pressure that being in debt puts on you and your small business. Contact us for a complimentary consultation. We have helped small businesses in the Pleasanton, Stockton, Fremont, and Tri Valley areas with debt relief, and we can do the same for you.