Your post did it. You have successfully thrown one of your magic "pearls" and all will be right in the world.
Heres what TH is doing right now.... sitting down enjoying the salary that is still coming in not caring what your 2 cents are. Or that you made a new thread for something that should be in long winded old one.
Topic: Unsolicited But Nevertheless Very Good Advice To Terrahash And It's Principals (Read 1094 times)
November 11, 2013, 08:01:39 AM
November 10, 2013, 09:57:53 AM
Now don't get mad at me; I'm only the messenger and am bringing forth these suggestions and this information for the betterment and safety of the Bitcoin Community, such as it is.
Terrahash:
File a Chapter proceeding (Bankruptcy) at the first opportunity! You are broke, you cannot possibly make all the refunds that you have outstanding and by delaying the filing of a proceeding you are potentially damaging the financial future of at least some of your creditors (investors).
You have essentially announced your intention to file such a proceeding here:
Post #5155
https://bitcointalk.org/index.php?topic=198489.5140
"Update 11/9/2013: TerraHash is still in business, we have not filed for bankruptcy yet. The refund from Yifu was cashed immediately back then, we did not make any profits from the recent surge in BTC prices. Again, we are still committed to provide as much refund as possible. I will update again in a couple days on how we are going to proceed with that."
You are refunding in anticipation of bankruptcy and each and every one of those transactions can be un-done by the Court Trustee who will examine all of your transactions going back to the startup of your business.
If you have refunded Jim Bob his investment but have not refunded Johnny Joe, the transaction with Jim Bob will be deemed a preferential transaction and denied and un-done by the Court. In other words, the Court will go to Jim Bob and get the money back, one way or another.
Preferential Treatment defined:
http://www.agcga.org/galleries/new-gallery/AGC%20-%20Preferential%20Payments%20in%20Bankruptcy%20FINAL.pdf
"Preferential Payments in Bankruptcy
or
“You Mean I Have to Give the Money Back?”
Herbert H. Gray, III, Esq.
W. Russell Patterson, Jr., Esq.
Ragsdale, Beals, Seigler, Patterson & Gray, LLP
In a recent article published in this e-newsletter, we tried
to provide a basic understanding of bankruptcy law in very general terms. This article is aimed at a much more specific topic, andone that generates a great deal of inquiries to
us – preferential payments to creditors.
The following may soon happen to you, if it hasn’t happened already.
After months and months of chasing down a debtor, you receive a check in the mail.
Good news all the way around. Two weeks later, you receive
a notice from the Bankruptcy Court that the debtor who
finally made a payment to you has filed a Chapter 7 proceeding.
“Wow,” you think; “We just made it in! Were we ever lucky to receive payment when we did.” You hear nothing else for months, or a year, or up until two or more years later when
you receive a letter from your debtor’s Chapter 7 Trustee (who wasappointed by the Court, as you will remember) as follows:
It is our understanding that youreceived a payment from the Debtor in the amount of $Xon XX/XX/2009. As this payment was made within ninety days of the date of the Debtor’s filing of a bankruptcy petition, the payment to you is deemed a preferentialpayment and is avoidable. Please return this payment within ten days or litigation will be commenced against you.”
This could and will happen to any number of those to whom you have refunded.
Your present course of action is only angrying people and causing them to incur legal fees which they will never recover.
A Chapter filing means that creditors will only receive a portion of that which they had invested but at least everyone will get something and the damage cause by preferential treatment transactions will be minimised.
Remember also that any and I mean ANY transaction conducted in anticipation of bankruptcy can be reversed by the Court and there ya go again!
Bankruptcy laws were implemented for cases just like yours, Terrahash; you venture did not work out and there is no dishonour in availing yourselves of the protection of the Court.
Your creditors are already angry, they are going to remain angry but at least with a Chapter filing those angry creditors stand a chance of getting something back.
Failing to file could even lead to additional charges of criminal fraud brought by the government and we would not then see you for up to five years were the principals to be convicted.
I sincerely wish that I had other advice but there just isn't any.
Get it done and get it done now.
Do the right thing, see an attorney and get the damned thing filed!
My $.02.
Terrahash:
File a Chapter proceeding (Bankruptcy) at the first opportunity! You are broke, you cannot possibly make all the refunds that you have outstanding and by delaying the filing of a proceeding you are potentially damaging the financial future of at least some of your creditors (investors).
You have essentially announced your intention to file such a proceeding here:
Post #5155
https://bitcointalk.org/index.php?topic=198489.5140
"Update 11/9/2013: TerraHash is still in business, we have not filed for bankruptcy yet. The refund from Yifu was cashed immediately back then, we did not make any profits from the recent surge in BTC prices. Again, we are still committed to provide as much refund as possible. I will update again in a couple days on how we are going to proceed with that."
You are refunding in anticipation of bankruptcy and each and every one of those transactions can be un-done by the Court Trustee who will examine all of your transactions going back to the startup of your business.
If you have refunded Jim Bob his investment but have not refunded Johnny Joe, the transaction with Jim Bob will be deemed a preferential transaction and denied and un-done by the Court. In other words, the Court will go to Jim Bob and get the money back, one way or another.
Preferential Treatment defined:
http://www.agcga.org/galleries/new-gallery/AGC%20-%20Preferential%20Payments%20in%20Bankruptcy%20FINAL.pdf
"Preferential Payments in Bankruptcy
or
“You Mean I Have to Give the Money Back?”
Herbert H. Gray, III, Esq.
W. Russell Patterson, Jr., Esq.
Ragsdale, Beals, Seigler, Patterson & Gray, LLP
In a recent article published in this e-newsletter, we tried
to provide a basic understanding of bankruptcy law in very general terms. This article is aimed at a much more specific topic, andone that generates a great deal of inquiries to
us – preferential payments to creditors.
The following may soon happen to you, if it hasn’t happened already.
After months and months of chasing down a debtor, you receive a check in the mail.
Good news all the way around. Two weeks later, you receive
a notice from the Bankruptcy Court that the debtor who
finally made a payment to you has filed a Chapter 7 proceeding.
“Wow,” you think; “We just made it in! Were we ever lucky to receive payment when we did.” You hear nothing else for months, or a year, or up until two or more years later when
you receive a letter from your debtor’s Chapter 7 Trustee (who wasappointed by the Court, as you will remember) as follows:
It is our understanding that youreceived a payment from the Debtor in the amount of $Xon XX/XX/2009. As this payment was made within ninety days of the date of the Debtor’s filing of a bankruptcy petition, the payment to you is deemed a preferentialpayment and is avoidable. Please return this payment within ten days or litigation will be commenced against you.”
This could and will happen to any number of those to whom you have refunded.
Your present course of action is only angrying people and causing them to incur legal fees which they will never recover.
A Chapter filing means that creditors will only receive a portion of that which they had invested but at least everyone will get something and the damage cause by preferential treatment transactions will be minimised.
Remember also that any and I mean ANY transaction conducted in anticipation of bankruptcy can be reversed by the Court and there ya go again!
Bankruptcy laws were implemented for cases just like yours, Terrahash; you venture did not work out and there is no dishonour in availing yourselves of the protection of the Court.
Your creditors are already angry, they are going to remain angry but at least with a Chapter filing those angry creditors stand a chance of getting something back.
Failing to file could even lead to additional charges of criminal fraud brought by the government and we would not then see you for up to five years were the principals to be convicted.
I sincerely wish that I had other advice but there just isn't any.
Get it done and get it done now.
Do the right thing, see an attorney and get the damned thing filed!
My $.02.
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