I owe money to SVB and I have deposits with SVB. What happens now? I have 10 million USD deposited with Silicon Valley Bank. Now that they are liquidated, let's say I get to recover FDIC insured 0.25 million plus 5.75 million, total 6 million. At the same time, I owe Silicon Valley Bank 4 million dollars. What happens? Do the unrecovered deposits and loan cancel each other out? Or do I have to pay them back 4 million?
Your liabilities are not canceled out with your claims automatically. If this is a real story, it's best to talk to a lawyer familiar with bankruptcy proceedings. You still owe money to whoever owns the bankrupt bank now - that is, to the State of California. This debt stands to be collected. During the bankruptcy, your claim will be resolved in order of priority. After FDIC payout, the rest of your deposit will be priority unsecured debt. It is prioritized after priority payments and secured debts, but before non-priority unsecured debt. It is theoretically possible to lose the full deposit and still be liable for the debt.
In general, you still need to pay for the drink. If you had purchased the drink (on credit, ie a tab or similar as you appear to have done), and you had offered the vendor CASH, and he had refused, [if you can prove you offered him cash] he would be unable to pursue you for the debt (technically you would still owe it to him, but as he had declined government issued tender the government won't act on his claim, so he has no remedy available to him to extract payment - although he can refuse to serve you in future etc). Paying through a debit card is not the same as paying cash - although the money goes out of your account and into his, its not "legal tender" in the same way cash is.
They can't simply keep the money; that's against the law. But in a situation like this, it's easy to get lost in the bureaucracy. The company may be in violation of different laws, re: For Your Information | United States Department of Labor, so you can try pointing this out in another email or letter. The threat of the Feds or other enforcement agency looking into the matter may make something happen. Or, try this: find the CEO (or a similarly high-ranked executive) on LinkedIn; many have open messaging in interest of good PR. Message/email them and carefully (and nicely) explain the situation. (A CEO will likely have an assistant monitoring their LinkedIn account. But, there are many stories of Steve Jobs, Bill Gates and Jeff Bezos personally responding to emails.) Someone will make it happen and the employees who have not been helpful will be in hot water.
united-states They thought of that. See IRS Pub 550, page 36: You are treated as having made a constructive sale of an appreciated financial position if you: • Enter into a short sale of the same or substantially identical property, So when you short-sell 1 BTC while still holding 1 BTC, it's taxed as if you simply sold your 1 BTC. This makes sense as the transactions are essentially identical in effect. I don't think it matters that the 1 BTC you held was used as the collateral for the 1 BTC you borrowed. In particular, although short sales are usually reported and taxed as of the date when they close, constructive sales are an exception and are taxed on the date of the constructive sale itself: You must recognize gain as if the position were disposed of at its fair market value on the date of the constructive sale. This gives you a new holding period for the position that begins on the date of the constructive sale. Then, when you close the transaction, you reduce your gain (or increase your loss) by the gain recognized on the constructive sale. So this doesn't help in deferring your taxes.
there was absolutely nothing in the letter. You could hold it up to the sunlight and see that it was empty. There is no legal reason to do this. Somebody screwed up. Office workers are not infallible. It happens. I've seen government officials with no grudge against my client do it too now and then. Taken together with the spelling errors in your name it reflects general administrative incompetence and not some nefarious plot. The cautious thing to do would be to call them and tell them that you got a misaddressed letter with nothing inside it. A judge might frown at your conduct if you had some inkling they were trying to communicate with you and did nothing. Save the empty envelope to prove that they didn't send you a security deposit letter as they claimed if there is a dispute or litigation down the road.
You're not directly asking this, but I'm assuming what you're getting at is when do I owe the taxes upon receiving that pre-payment. This depends on your corporate structure as to how you can realize taxes. If you are DBA, LLC, or S-Corp you pay taxes based on your personal income at the end of the year as all earnings go to the owners because the business can't hold onto those. So if you receive those funds in Dec (assuming Dec is the end of your fiscal year), and you haven't delivered your service it doesn't matter you pay on the pre-payment funds which will really hurt you if you have to spend some of that pre-payment to deliver the service. If you are a C-Corp you can defer those taxes until you deliver the service as you can mark that revenue for the next year and several years as you deliver the service. What matters is how you declare your C-Corp's accounting practices for reporting your revenue to the IRS. What you want to do is be an accrual model. That will let you pay for things like salaries, COGS, etc before you know how much you made, and only pay taxes on the earnings at the tax rate of the corporation. Of course if you do this you would do this only if you want to keep that money in the corp to conduct business. You wouldn't want to pay corporate tax then pay personal income tax if you're the owner. So you'd want to pay out any earnings to yourself as a distribution (ie to all owners) or bonus (to individuals) to avoid the double taxation. Keep in mind I'm not an accountant, tax lawyer, but a guy who has been through exactly what you're asking. Consult professionals as needed because you'll be up your eye balls in contracts to build such a business and you'll need their help anyway.
Small claims court was created for such matters. There is the possibility of a fee waiver, and if you prevail, you could get some of your costs covered (though there are other hoops to jump through if you need enforcement). A formal letter (written by you) stating that you intend to seek a legal judgment against him/her in the amount owed might be sufficient motivation for the person to pay what is owed.
They recently took me to court (I am now 20) to have me start paying for the bill, under distress I signed paperwork stating that I'd start paying them, however I find this entire situation very aggravating. Short Answer You are almost surely screwed at this point and can't do anything but abide by the settlement that you agreed to when you signed the paperwork. Preface Regarding The Applicable Jurisdiction I am answering based upon the majority rules of law in U.S. states, because there is almost no other country in the world where you could end up in this financial situation due to universal healthcare systems that exist in most countries other than the United States. Also, this isn't an area of law with a great deal of state to state variation, although the law isn't exactly the same in every single U.S. state. The Minority Defense You quite possibly had a minority defense before you signed the paperwork. The minority defense is based upon an inability to give adequate consent to a contract. Whether the minority defense would have worked in this case, however, is a close call, because there are exceptions to the rule that would probably apply in this case. Settlement, Ratification and Duress The legal standard for "duress" in contract law usually means situations where there is literally a gun to your head or they're going to kill your dog or something like that, not the kind of economic pressure or persistent harassing collection efforts that I suspect you are referring to in this case. Of course, if they did steal your dog and threaten to kill it if you didn't sign the paperwork, then you really would have signed it under duress and you should probably both take legal action to repudiate that paperwork (because agreements entered into under duress are generally voidable, rather than void), and you should probably report the incident to the police as a crime. So, anyway, the paperwork you signed is probably enforceable, despite the pressure that they put on you to sign it. Once you sign a settlement agreement as an adult (which is almost surely what you did) you have ratified the agreement made when you were a minor and forfeit any way to fight it. You are stuck with what you agreed to at this point and there is nothing you can do about it short of going bankrupt. I would not recommend going bankrupt over a debts owed to a single medical provider unless that debt is so huge that ruining your credit for seven years and paying a bankruptcy lawyer is worth it to get out of this debt. For most twenty-year-olds facing debts for a few chiropractor treatments this would not make sense. Lesson learned: Talk to a lawyer before you sign paperwork, not afterwards, because once you've signed on the dotted line, there is usually little or nothing that a lawyer can do to help you at that point. Guarantors As a guarantor of the obligation to pay for your care, your mother would no doubt be on the hook in any case, whether or not you settled, and whether or not you went bankrupt. Unless the settlement agreement that you signed says otherwise, they can still attempt to collect the bill from her as well as from you. Of course, as you make payments towards the total balance due, the total balance due goes down. Your mother, as a guarantor, is only obligated to pay the portion of the bills that remain unpaid when they try to collect the debt from her. The Necessaries Exception To The Minority Defense Even though the minority defense might apply in this situation, most states recognize an exception to the minority defense when a purchase of "necessaries" is made by a minor. Bills for medical care would usually count as "necessaries", because you would have had no choice but to buy if you had been an adult anyway, so your lack of consent to pay isn't something that caused you material harm. Honestly, in the medical industry, an agreement in advance to pay a negotiated price is the exception rather than the norm. Often the providers themselves have no real clear idea what their patients are billed for their services, although chiropractors tend to be more informed about the financial arrangements than medical doctors in most cases. Void Contracts v. Voidable Contracts In any case, minority is a defense to a contractual obligation that would ordinarily only make the contract voidable, rather than void. In other words, a minor can repudiate a contract that is voidable on account of minority and successfully get out of it within a reasonable time of becoming an adult (or sooner while you are still a minor through a parent or guardian or next friend), but it is not automatically invalid. There is a good chance that a court would consider a two year delay in trying to repudiate the contractual obligation too long, even if it concluded that the necessaries doctrine did not apply because, for example, the court considered this to be elective, luxury care rather than medically necessary services. Unjust Enrichment Claims Also, in addition to suing for breach of contract, the chiropractor might be able to sue for quantum meruit. This legal theory is not based upon mutual consent the way a contract claim is, although this is sometimes called a "quasi-contract" or "implied contract" claim (it is also sometimes called a "restitution" or "unjust enrichment" claim). As a result, minority is not usually a defense to a quantum meruit claim. Instead, a quantum meruit claim is based upon preventing you from being unjustly enriched, (1) from benefits that you received, (2) that were not unwelcome, (3) from the efforts of someone else who did that work, (4) with a reasonable expectation of being compensated for the work, (5) in situations where there is no binding contract between the parties. (Different lawyers and different courts might break up these elements into more or fewer components, but the gist of the claim would be the same in pretty much any state.) In a quantum meruit case, damages are based upon the fair market value of the services rendered, rather than an agreement of the parties, since there was no mutually agreed price under a contract that they are seeking to enforce. Quantum meruit claims are frequently brought as a backup claim to a claim for breach of contract by failing to pay for services, in cases where the contract claim may be infirm for reasons such as minority.