Bel Air payroll processing company AccuPay Inc.’s bankruptcy case is making headlines after two dozen creditors showed up for court proceedings last week in Baltimore. According to the Baltimore Sun, federal authorities are investigating AccuPay after the company failed to make federal and state tax payments on the behalf of clients.
AccuPay filed for Chapter 7 bankruptcy in March. During court proceedings last week, AccuPay president Beverly Carden refused to answer questions about assets, invoking her Fifth Amendment right to avoid self-incrimination.
One of the clients AccuPay allegedly defrauded, Edgemere real estate firm MLSS Title, found out $36,000 in federal and state taxes were not paid last year. “I was expecting to find out if they had enough assets to pay the creditors,” MLSS CEO George R. Carter said at the hearing last week. “I can’t imagine that AccuPay has enough assets to pay. Besides being upset with AccuPay, I am upset with the state of Maryland [which] does not require bonding for a company like that.”
It is unfortunate when a business allegedly defrauds people and uses bankruptcy in an attempt to discharge debts. Bankruptcy is for individuals, businesses and municipalities that are struggling financially, but need to find a way to restructure and discharge debts.
If you are thinking about filing for bankruptcy, which allows you discharge debts like credit card debt, medical bills and unsecured personal loans, contact our Washington DC and Maryland bankruptcy lawyer to learn more.
Judd’s Judgment: A bankruptcy filing stops lawsuit proceedings.