Thames | Markey Thames | Markey 2026-10-20T07:03:20Z https://www.thamesmarkey.law/feed/atom/ WordPress /wp-content/uploads/sites/1300733/2020/07/cropped-site-identity-32x32.jpg On Behalf of Thames | Markey <![CDATA[Personal guarantees and insolvency: protecting yourself when your business struggles]]> https://www.thamesmarkey.law/?p=47762 2026-10-15T07:04:32Z 2026-10-20T07:03:20Z How personal guarantees expose individual assets A personal guarantee is an independent contract between you as an individual and a corporate creditor. If your business defaults, the lender can file suit against you directly in Florida state court. Once a judgment is obtained, creditors may pursue non-exempt personal assets, including personal bank accounts, non-registered investment accounts, secondary real estate, and future personal income through wage garnishments. Florida law does provide meaningful protections, and knowing what is shielded matters significantly when addressing guarantee claims.

Florida asset protection rules

Florida Statutes Chapter 222 and the Florida Constitution provide several exemptions that apply to individuals facing personal guarantee judgments:
  • Homestead exemption: under Article X, Section 4 of the Florida Constitution, a primary residence is protected from forced sale by judgment creditors, subject to acreage limits of half an acre within a municipality or 160 acres outside one
  • Tenancy by the Entirety: assets jointly owned by married couples are protected from individual creditors when only one spouse signed the guarantee; if both spouses signed, this protection does not apply to that debt
  • Retirement accounts: qualified 401(k) plans, IRAs, and pension funds are exempt under Fla. Stat. § 222.21
  • Head of household wages: earned income for a primary wage earner supporting a dependent is protected from garnishment under Fla. Stat. § 222.11
Knowing which assets fall within these categories is an essential first step before making any decisions about insolvency.

Resolving personal guarantee liability through bankruptcy

Two bankruptcy paths are commonly used when personal guarantee exposure is significant. A corporate Chapter 11 or Subchapter V reorganization allows the business to restructure its debt while continuing operations. According to the U.S. Courts Chapter 11 bankruptcy overview, a reorganization plan can provide leverage for negotiating reduced terms with creditors, which may also benefit individual guarantors. When personal guarantee judgments threaten non-exempt personal assets directly, an individual Chapter 7 or Chapter 13 filing provides an immediate automatic stay, halting all collection actions, lawsuits, and garnishments. A Chapter 7 discharge can eliminate personal guarantee liability permanently for eligible filers.

Getting the right guidance

Personal guarantee exposure requires looking beyond the business balance sheet to understand the full picture. A Florida business bankruptcy attorney in Jacksonville can analyze guarantee language, evaluate available exemptions, and help you develop a strategy that addresses both the business and your personal financial situation.]]> On Behalf of Thames | Markey <![CDATA[Understanding preference payments in Chapter 7 cases]]> https://www.thamesmarkey.law/?p=47757 2026-10-05T07:17:42Z 2026-10-08T07:17:09Z What defines a preference payment A preference payment occurs when an insolvent debtor pays a creditor for a preexisting debt. For it to qualify, the payment must have taken place within the 90 days leading up to the bankruptcy filing. However, if the recipient is an insider, such as a family member, general partner or corporate officer, this look-back period extends to one year. The court may examine and determine whether this payment action helped the creditor to gain more than they would have in a Chapter 7 liquidation had the transfer not taken place. These rules aim to ensure fair payout of assets among all parties in the case.

Common defenses against recovery

Trustees cannot claw back every payment made before a filing. Creditors and businesses often use legal protections to justify keeping the funds received during the look-back period. Common defenses include:
  • Ordinary course of business: This defense involves demonstrating that the payments are aligned with routine business operations, following standard billing and payment patterns.
  • Contemporaneous exchange for new value: This defense applies when the payment and the receipt of new goods, services, or other consideration were intended to occur at the same time and actually did so.
Apart from these two, with the help of a bankruptcy attorney, you can explore more defense options.

Managing the impact on operations

Businesses benefit from preparing for the chance that a trustee will review every financial transaction from the past months. Keeping clear records of invoices and payment dates can help show that certain transfers were valid business activities. This preparation may lower the risk of costly litigation during the bankruptcy process.

Resolving preference payment concerns

Managing the complex rules of preference claims needs a clear view of federal laws and local court trends. A bankruptcy attorney may clarify how these rules apply to certain business transactions.]]> On Behalf of Thames | Markey <![CDATA[3 signs Chapter 7 bankruptcy may be worth considering in Florida]]> https://www.thamesmarkey.law/?p=47658 2026-09-22T09:14:43Z 2026-09-25T09:14:11Z Sometimes the hardest part of dealing with debt is admitting that the plan is no longer working. A person may have made every payment on time for years, cut back on spending and used every spare dollar toward what they owe. Yet the balances barely move. At some point, continuing to pay may require choices that the household simply cannot sustain. That does not automatically make Chapter 7 bankruptcy the right answer. Bankruptcy can affect property, certain debts and a person’s financial future, so the decision deserves careful thought. For some Florida residents, however, Chapter 7 may offer a more realistic way to address qualifying debt than continuing a repayment cycle with no clear end. These three signs may warrant a closer look.

1. Your unsecured debt leaves little room in your budget

Credit cards, medical bills and personal loans can consume income without creating an asset in return. If you can only make minimum payments while interest continues to add to your balances, you may struggle to see a realistic path toward paying everything off. Chapter 7 can discharge many types of unsecured debt for eligible filers. However, it does not erase every obligation. Certain taxes, child support, alimony and some student loans may remain after bankruptcy.

2. Your income may meet Chapter 7 requirements

Chapter 7 does not automatically apply to everyone who has significant debt. The means test helps determine whether an individual or family qualifies. The test considers household income and size, along with certain allowed expenses and debt payments. If your income falls below the applicable median for your household size, you may qualify based on that part of the test. If your income exceeds the median, additional calculations may still determine eligibility.

3. Your property may fit within available exemptions

Before filing, consider what you own and what Florida law allows you to protect. Chapter 7 can involve the liquidation of nonexempt property, so property ownership can affect whether filing makes sense. Florida's exemption rules can protect certain assets under specific circumstances. These rules can involve a home, vehicle, personal property and other assets. Your eligibility for an exemption can depend on factors such as the type and value of the property. Debt alone does not determine whether Chapter 7 makes sense. Income, assets, expenses and the types of debts involved all matter.

Get guidance before filing

Choosing bankruptcy can involve frustration, uncertainty and the feeling that years of trying to stay afloat have not been enough. Those concerns deserve consideration alongside the potential benefits of a Chapter 7 filing. A Florida bankruptcy attorney can review those factors, explain the potential consequences and help determine whether Chapter 7 or another option better fits the person’s circumstances. Seeking legal guidance before filing can make a difficult decision more informed and deliberate.]]> by Thames | Markey <![CDATA[Commercial real estate zoning issues in Jacksonville]]> https://www.thamesmarkey.law/?p=47659 2026-09-17T20:40:31Z 2026-09-23T20:40:03Z Make sure the property fits your business plans A property may look perfect for your business, but you should first check whether you are legally allowed to operate there. In Jacksonville, zoning rules decide what businesses can operate in an area and may also set rules for building size, height and space between buildings. You can check a property’s zoning and land use information through the city’s online map. Doing this before buying or leasing the property can help you avoid costly problems later.

Look beyond the zoning label

Zoning is only one piece of the puzzle. Before you commit to a commercial property, you should also ask yourself these questions:
  • How much space must remain between the building and property lines?
  • How much of the property can buildings cover?
  • Are there limits on how tall you can build?
  • Does the property meet the required amount of frontage?
  • Are there limits on how much development is allowed?
Checking these rules early can help you understand what you can actually do with the property and avoid costly surprises later.

Your options when the property does not fit

If the property does not support your intended use, you may have options such as rezoning, a zoning exception or a variance. Discuss your plans with City of Jacksonville Planning and Development Department staff before applying. Knowing these options early can help you decide whether to pursue the property or look for one that better fits your business plans.

Make informed decisions and protect your investment

When you invest in commercial real estate, understanding the key rules and requirements can help you avoid costly mistakes. Taking the time to check the property, understand its restrictions and follow the right steps can prevent unexpected expenses and delays. With the right information, you can make a confident decision and better protect your investment and business plans.]]> On Behalf of Thames | Markey <![CDATA[Can you keep running your business during Chapter 11 in Florida?]]> https://www.thamesmarkey.law/?p=47657 2026-09-02T10:39:39Z 2026-09-07T10:39:18Z How you can stay in control of your business When you file Chapter 11, you usually remain what is called a debtor in possession. That status allows you to keep managing day-to-day matters. You may continue serving customers, paying ordinary expenses and overseeing staff. Still, Chapter 11 does not leave you with unlimited freedom. The court oversees the case, and some actions require approval. For example, you may need permission before selling major assets, borrowing new funds or entering unusual transactions. Smaller businesses may also qualify for Subchapter V, a streamlined Chapter 11 process available since 2020 that can reduce costs and complexity for eligible debtors. To qualify, a business generally must have aggregate debts below a specified threshold – currently $7,500,000 for cases filed after certain legislative adjustments, though this figure is subject to change. An attorney can confirm whether your business currently meets the eligibility requirements.

Limits on your authority

Chapter 11 gives you room to operate, but it also imposes structure. You must meet reporting duties, provide accurate financial information and follow court orders. If you fail to meet those duties, the court may appoint a trustee or take other corrective steps. You should also expect scrutiny from creditors, the U.S. Trustee and others with a stake in the case, such as major vendors or equity holders. This level of oversight can feel intrusive, but it is designed to protect the integrity of the process – not to impede legitimate business operations.

Practical issues you should expect

During Chapter 11, you may need to address several operational concerns:
  • Cash flow often remains tight during the early stages of the case.
  • Vendors, lenders and landlords may seek reassurance before extending terms.
  • Lease obligations and contract rights may require careful review.
  • Payroll, taxes and insurance must stay current.
  • Larger financial moves often need court approval.
These demands can place real strain on an owner who already faces serious pressure. Understanding your obligations and acting with discipline can improve the chances of preserving value during the reorganization process.

Acting early in Chapter 11 may preserve more options

Debtors who understand their obligations, address creditor concerns early and maintain accurate financial records are better positioned to complete the reorganization process. Acting before financial problems become unmanageable typically leaves more options for preserving what the business has built.]]> On Behalf of Thames | Markey <![CDATA[Does a sole proprietor’s bankruptcy filing affect their spouse?]]> https://www.thamesmarkey.law/?p=47646 2026-08-17T14:57:12Z 2026-08-24T14:55:57Z Couples don’t have to share everything, including business debt. Fortunately, if you are a sole proprietor residing in Florida, your business debts are legally considered personal debts and may not affect your spouse. However, there are several factors in play here and the answer entirely depends on your specific case. Here is what you need to know to assess your situation better. 

Florida is a common-law property state

In Florida, a spouse is not automatically liable for debts incurred solely by the other spouse. If a husband incurs $10,000 in business or personal debt under his name alone, that liability belongs to them individually. Because the debt is not joint, creditors cannot go after the non-debtor spouse’s separate property or personal bank accounts and that spouse's credit score will remain unaffected by an individual bankruptcy filing.

Tenancy by the entirety (TBE) shield

Tenancy by the Entireties (TBE) is a powerful legal protection offered by the state of Florida to married couples. It protects their jointly owned properties, such as real estate and bank accounts. Under TBE, the property is a single marital entity that both members of the couple own. Consequently, a creditor of only one spouse cannot seize, liquidate or force the sale of TBE property to satisfy an individual debt.

There is always a “but”

Your spouse is largely safe. However, the creditor can still pursue them if they had co-signed a business loan or offered a personal guarantee on your behalf. Further, you may pull your spouse into the fray if you panic-transfer all your property to them, fearing confiscation. A bankruptcy trustee can audit your past transactions and undo them if they find them fraudulent. Lastly, the TBE shield can prove ineffective against joint debt. 

Proactive protection

If you are not careful enough and don’t have a safe exit strategy, you may put your spouse at risk. That is why you need to consult a legal counsel experienced in bankruptcy cases who can lead you through the right course of action.]]> On Behalf of Thames | Markey <![CDATA[When to consider Chapter 7 bankruptcy for your Florida business]]> https://www.thamesmarkey.law/?p=47653 2026-08-19T07:52:54Z 2026-08-24T07:51:56Z Recognizing the signs that Chapter 7 is right for your business Filing for Chapter 7 bankruptcy may be the most financially reasonable option, as it allows you to legally dissolve your business and deal with your debts according to the law. Below are some signs that suggest it is time to consider Chapter 7 bankruptcy for your business:
  • You cannot pay your business bills: If you consistently cannot pay your business bills and your payments are regularly overdue, your business may be insolvent. Chapter 7 allows you to sell business assets to pay what you owe under federal law.
  • Your business is facing creditor lawsuits: If creditors have started lawsuits or other collection actions, it may be time to consider Chapter 7 bankruptcy. Chapter 7 bankruptcy can put a stop to most collection attempts as soon as the automatic stay is filed with the court.
  • Your business owes more than its assets are worth: If your assets have a value less than the total amount of your debts, the sale of your assets may not be enough to settle what you owe. In Chapter 7 bankruptcy, the assets of your company can be sold, and the funds raised through the sale will be distributed to your creditors in accordance with the law.
Sometimes the most responsible decision when it comes to your business is to simply shut it down rather than owe more money. Filing for bankruptcy seems like a lot to think about, but it can help you to take steps toward improving your financial situation.

Finding the right solution for your business

If every month brings new bills that you cannot seem to pay, and your debts continue to pile up no matter what you do, exploring your legal options may be the better choice. Understanding whether Chapter 7 bankruptcy is the right choice for your Florida business can help you navigate financial challenges with greater confidence and clarity. It can also help stop most collection efforts, protect your interests and reduce the stress of dealing with overwhelming debt.]]> On Behalf of Thames | Markey <![CDATA[Can a Florida landlord claim business assets?]]> https://www.thamesmarkey.law/?p=47650 2026-08-17T14:57:05Z 2026-08-21T14:56:47Z Which business assets may be covered The lien may apply to assets you own and usually keep in the leased space, such as:
  • Machinery and equipment used for operations
  • Inventory or merchandise stored for sale
  • Office furniture, computers and electronics
These items often keep the business running, so a rent dispute can quickly become an operations issue. Property you do not own, such as leased equipment, consigned inventory or items owned by another business, may require a closer review.

Who may have a stronger claim to the property

The landlord’s rights may compete with claims from lenders, vendors or equipment finance companies. Who has the stronger claim can depend on when the property entered the space, whether a lender already has a documented claim to it and whether the lease includes a lien waiver, which is language limiting or giving up the landlord’s lien rights. Before a dispute grows, gather your lease, payment ledger, default notices, financing records, inventory lists and messages about unpaid rent. These records help show which assets are involved and who may already have a claim to it.

A lien does not mean immediate seizure

A lien gives the landlord a possible legal interest, but enforcement generally requires a court process called distress for rent. A judge may issue a court order called a distress writ, and the property owner generally must post a bond first. The sheriff, not the landlord, handles any legal seizure of property. A landlord generally cannot use self-help, such as changing the locks or taking property without a court order, while you are still operating in the space.

Protecting your business property

When unpaid rent puts business assets at risk, early organization can help you understand what is actually exposed. Legal guidance can also help you review the lease, ownership records and financing documents before the dispute affects your ability to operate.]]> On Behalf of Thames | Markey <![CDATA[Is your social media account at risk in a business bankruptcy?]]> https://www.thamesmarkey.law/?p=47652 2026-08-17T14:57:00Z 2026-08-20T14:56:02Z It is quite hard to imagine that a social media account could be at risk of confiscation during business bankruptcy. Unfortunately, it may be possible in Florida and many other states in the country. If your social media account is tied to the business, your company (or its bankruptcy estate) may try to claim it.  

Blurring the line between personal and business affairs

Most business owners use social media to market their products and services. This often blurs the line between personal and business affairs. For example, the former CEO of Vital Pharmaceuticals Inc. used his social media to promote his business and to post his personal content. When he left the company, his social media account became a point of contention in the court, ultimately the company claiming ownership based on a three-step framework. 

What is a three-factor test and why should you know about it?

While resolving the dispute over the ownership of a former CEO’s social media account, the U.S. Bankruptcy Court for the Southern District of Florida, came up with a three-step framework to determine the ownership. The framework will evaluate the following:  
  • How is the account used?
  • Who has access to that account?
  • Is there a contract that states the ownership of that account?
The court will use these factors to reach a final conclusion. 

How can you save your social media account?

In many cases, social media accounts serve a vital role in running a business. As a result, it is common for creditors to become aggressive in claiming them. However, with the help of an experienced legal counselor, you may be able to analyze your situation, review your account and protect your digital identity from corporate liabilities.   ]]> On Behalf of Thames | Markey <![CDATA[Can creditors come after your personal assets?]]> https://www.thamesmarkey.law/?p=47644 2026-08-14T11:46:29Z 2026-08-19T11:45:27Z As a business owner, you understand that running a business comes with financial risks. If your company is struggling with debt, you may be worrying about more than just keeping the doors open—you may be concerned that your personal savings, home or other assets are at risk. The answer depends on several factors, including your business structure, whether you signed personal guarantees and the type of debt involved. Understanding when creditors can pursue personal assets can help you make informed decisions.

Why business structure is important

One of the main reasons business owners choose a formal business entity is to keep business liabilities and personal finances separate. Corporations and limited liability companies (LLCs) generally provide a legal shield between a company’s debts and the owner’s personal assets. This means that if the business can’t pay its creditors, the owners aren’t personally responsible. However, this protection is not absolute. Even if your business is an LLC or corporation, there are situations where creditors may seek repayment from you personally, such as:
  • You signed a personal guarantee: Many lenders require business owners to sign personal guarantees before approving loans, lines of credit, equipment financing agreements or commercial leases. By signing a personal guarantee, you agree to repay the debt if your business can’t. If the business defaults, creditors may pursue your personal assets regardless of your business structure.
  • You mixed personal and business finances: It’s crucial to maintain a clear separation between the two. Using business funds for personal expenses, failing to maintain accurate records or treating the company as an extension of yourself can weaken the liability protections that an LLC or corporation provides.
  • You owe certain taxes: Unpaid taxes can create risks for business owners. The IRS may hold you personally responsible for unpaid payroll taxes, including the amounts withheld from employee paychecks.
  • You engaged in fraud or misconduct: If a court determines that a business owner was involved in fraud, misrepresentation, or other wrongful acts, personal assets could become vulnerable to creditor claims.
If your business is facing financial difficulties, taking early action can make a significant difference. A legal professional can help you understand your exposure and explain your options for protecting both your business and your personal finances.  ]]>