Thames | MarkeyThames | Markey2026-08-24T14:55:57Zhttps://www.thamesmarkey.law/feed/atom/WordPress/wp-content/uploads/sites/1300733/2020/07/cropped-site-identity-32x32.jpgOn Behalf of Thames | Markey<![CDATA[Does a sole proprietor’s bankruptcy filing affect their spouse?]]>https://www.thamesmarkey.law/?p=476462026-08-17T14:57:12Z2026-08-24T14:55:57ZCouples 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=476532026-08-19T07:52:54Z2026-08-24T07:51:56ZRecognizing 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=476502026-08-17T14:57:05Z2026-08-21T14:56:47ZWhich 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=476522026-08-17T14:57:00Z2026-08-20T14:56:02ZIt 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=476442026-08-14T11:46:29Z2026-08-19T11:45:27ZAs 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 signpersonal 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 isfacing 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.
]]>On Behalf of Thames | Markey<![CDATA[Assignment and subletting rights for Florida businesses]]>https://www.thamesmarkey.law/?p=476472026-07-13T09:31:32Z2026-07-16T09:30:30ZAssignment vs. subletting
When considering how to go about your lease transfer, you have the option to assign or sublet your space. With assignment, you surrender your entire leasehold interest to another party. This new tenant takes over your rights and obligations, directly dealing with your landlord.
With subletting, you let another party use all or part of your space for a portion of the remaining lease term. You generally function like a landlord while remaining responsible under the original lease. Whether you choose assignment or subletting, it is vital to ensure your lease contract permits it.
Critical clauses to watch out for
State law is generally particular about contracts, and courts will often uphold the language used in your agreement. It can be helpful to read the fine print of your lease terms to check for these provisions:
Recapture rights: Your landlord will terminate your lease and take the space back entirely if you ask for permission to sublet.
Profit sharing: You may be required to split or forfeit any excess rent gained from a subtenant.
Ongoing liability: You remain accountable if the new tenant fails to pay rent, unless there is a signed formal release.
Unless your lease agreement explicitly gives your landlord sole and absolute discretion to say no, they cannot deny your request to transfer the lease.
Protecting your business
When speaking with your landlord, you can negotiate a permitted transfer clause on the agreement to give your business greater flexibility. This provision gives you the right to assign the lease without the landlord’s consent in key transactions like a merger, sale of the business or transfer to an affiliate.
Having this clause helps ensure your lease moves with the business and will not disrupt a deal. You may also want to get this agreement in writing and formally documented to avoid sudden terminations of your tenancy by your landlord.
Making your lease work for your business
Negotiating favorable transfer provisions upfront allows you to maintain flexibility needed for the long-term survival of your company. A lawyer can help you review your commercial lease terms and protect your interests in any transaction.
]]>On Behalf of Thames | Markey<![CDATA[Can you own competing franchises?]]>https://www.thamesmarkey.law/?p=476422026-06-12T12:44:23Z2026-06-17T12:43:26ZAs a franchise business owner, you may find yourself interested in multiple franchises that are in the same space. For instance, maybe you own one fast-food restaurant location, and you are looking forward to opening another. But you are not sure that you want to open the exact same type of business in a new location, and you are instead looking at other types of fast-food franchises.
Even though you fully understand how to run a franchise location, these businesses would technically be competing against one another for the same group of potential customers. Are you allowed to open multiple franchises that are connected to different, competing brands?
Checking your franchise agreement
As a general rule, the answer is yes. You likely can own multiple franchises from different brands, even if they compete with one another. You could also consider starting a franchise location in an entirely different industry, which would not be competing with your existing fast-food location. It depends if you want to branch out into a new industry and if you think your local area could support it.But the key is simply to check the franchise agreement that you signed for the initial location. If that agreement stipulates that you cannot own a competing franchise, you would be violating the contract by opening your new franchise. So it is very important to understand exactly what rules the documentation lays out and what you have already agreed to when taking steps to move forward with another business opportunity. If you have any questions or concerns during this time, it can help to work with an experienced attorney.
]]>On Behalf of Thames | Markey<![CDATA[Report: Business bankruptcies rose by 7.1% last year]]>https://www.thamesmarkey.law/?p=476402026-06-03T13:29:44Z2026-06-08T13:28:27ZEarlier this year, the U.S. government released reports documenting business bankruptcy filings in 2025. What they found is that these bankruptcies increased by a significant amount, rising by 7.1% during the course of the year.In 2024, there were 23,107 business bankruptcies. The 7.1% increase is due to the fact that there were 24,737 business bankruptcies in 2025.There has been a corresponding rise in personal bankruptcies, which went up by 11.2% over the same time period. Personal bankruptcies are much more common than commercial bankruptcies, with a total of 549,577 bankruptcies declared in 2025.
3 years of increases
On a long-term scale, bankruptcies had been dropping and had been doing so for over a decade. But that reversed course in 2022. That year, there were a low of 13,481 business bankruptcy filings. Every year since, the total has increased, culminating in more than 24,000 business bankruptcies last year.It will be very interesting to see if the same trend continues in 2026. Government reports do note that filings have not increased to historical highs, even if there has been a stark reversal from the decrease in bankruptcy filings seen in previous years.
What are your bankruptcy options?
Reports like these help demonstrate that bankruptcy is a growing issue in the United States and could affect more and more business owners in the months and years to come. If you find yourself in this position, it is very important to understand exactly what bankruptcy options you have and what steps you will need to take while navigating this process.]]>On Behalf of Thames | Markey<![CDATA[The main risks of terminating a franchise agreement early]]>https://www.thamesmarkey.law/?p=476362026-05-18T10:19:27Z2026-05-21T10:18:44ZFranchisors protect themselves contractually
Typically, franchise contracts do not just impose standards on franchisees and outline their financial obligations. They also include provisions addressing the possibility of an early termination. Franchisors often impose a financial penalty for early franchise termination. It may cost thousands of dollars to end the franchise contract before its expiration or renewal date.
Additionally, the owner of the franchise may be subject to restrictive covenants. Nondisclosure agreements may prevent them from sharing information about how the franchise operates. A noncompete agreement may prevent them from establishing a company in the same industry and community for multiple years after a franchise closes.
In some cases, such as when franchisors do not make all of the mandatory disclosures about the opportunity, the franchisee can terminate the contract early without penalties. Other times, they may need to negotiate with the franchisor to limit the consequences of early termination.
Reviewing franchise agreements thoroughly before announcing any significant changes to the franchisor can be beneficial for franchisees who want to move on to new opportunities. Getting experienced legal guidance can help franchisees identify risks and minimize the consequences of an early termination.
]]>On Behalf of Thames | Markey<![CDATA[Can you sell your business during bankruptcy?]]>https://www.thamesmarkey.law/?p=476322026-05-11T15:30:29Z2026-05-14T15:29:50ZWhen selling during bankruptcy may be an option
Not every business will qualify for a sale during bankruptcy. Even so, some business owners explore this option after filing when they want to preserve value before it declines further. A sale may be possible if:
You continue operating the business or maintain assets that may attract buyers
You receive interest from a potential buyer or investor
Your current debt load restricts your ability to operate under normal conditions
You want to avoid liquidation at a reduced value
You seek to maintain jobs or ongoing business relationships
Timing can influence the outcome. Taking action earlier in the case may expand available options and increase buyer interest.
How the sale process works during bankruptcy
Most business sales during bankruptcy take place under Chapter 11. In this setting, the court oversees the proposed sale and evaluates whether it meets legal standards for fairness.
You may continue operating as a debtor in possession while preparing the business for sale. The process typically involves identifying which assets or operations will be sold, marketing those assets to potential buyers and reviewing any offers received. The court will then review the proposed transaction before deciding whether to approve it.
This structure can make the business more attractive to buyers. Court oversight provides a defined process, which can reduce uncertainty and support a more orderly transaction.
What selling during bankruptcy can and cannot do
A sale during bankruptcy can convert business assets into funds that apply toward outstanding debts. It may also allow certain parts of the business to continue under new ownership, which can benefit employees and existing clients.
At the same time, this option has limits. A sale does not ensure full repayment of all debts, and ownership of the business will transfer once the transaction is complete.
The process also requires full financial disclosure and ongoing court involvement. You will need to provide accurate information and meet required deadlines throughout the case.
A strategic exit, not just an ending
Selling a business during bankruptcy can feel like letting go of something built over many years. That reaction is common. A planned sale, however, can provide a more controlled outcome than a sudden closure.
A structured process gives you more influence over how the business is presented and how offers are evaluated. It may also reduce disruption and limit further loss.
When financial strain continues during a bankruptcy case, closure is not always the only outcome. Some business owners use a sale during bankruptcy to address debt while preserving remaining value. Each situation will depend on the business, its assets and its overall financial condition.
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