[msfs]

I have a small business in Texas, sole proprietorship, that I have just received a notice that my business checking account has been frozen via Notice of Receiver and Order of Freezing of Bank Account. I had originally agreed to a payment plan earlier this year. The total mount owed was approximately $ 21,500. I paid in $ 4,500, leaving a balance of approximately 17K.

However, when the economy collapsed I was unable to maintain the agreed to payment plan. I am interested in continuing the payments but not at the original amount due to drop in business. The court now says that I owe $ 38,000 which is more than double that I owe.

My biggest problem is that in order to stay in business I need to pay my employees and pay my suppliers. How I am going to be able to do this if they "freeze" my bank account? At the time, they froze it, there was a little over 10k in the account. Is it safe to open another account perhaps as a LLC or corporation? I really don't like the idea of filing for bankruptcy but am entertaining the thought. I currently have several checks to deposit but am unwilling to do so. Time is of the essence because payroll is coming up in a few days.

Thank you for any advice!

[excon]

Is it safe to open another account perhaps as a LLC or corporation? I really don't like the idea of filing for bankruptcy but am entertaining the thought.

Hello ms:

If the judgment creditor can prove that you moved assets around in order to avoid paying the judgment, you can be charged with fraud... The only way to do that legally, is to file for BK.

I'd run it by a lawyer first, though.

excon