The cats have been notified by their San Francisco attorneys that the funds in their asset protection LLC are exhausted and that their attorneys are owed $15,510 for their services. The cats asked me to review their attorneys’ accounting since their attorneys won’t take their calls. This is the accounting:

1/3 cost to purchase condo in Yachats………………………………… $20,000

Round trip airfare for the Old Tom………………………………………       500

Reimbursement for cost of Bowser’s water bowl………………………        10

Legal fees and costs to set up and manage asset protection LLC,

review co-tenancy and indemnification agreements, advice re: creditors,

theft of Pee Wee’s collar, damage to screen door, demand for

indemnification, wind up and dissolve asset protection LLC………..    35,000

Total……………….. $55,510

Received from Shock-A-Dog Company…  40,000

Balance Due……… $15,510


I inform the cats that the fees appear to be excessive but that they would have to spend thousands of dollars in California contesting the fees. The cats decide to file bankruptcy. Since they can’t afford to consult a bankruptcy attorney, they reluctantly ask me which of their debts are dischargeable in bankruptcy and which are not. They inform me, sheepishly, that they did not pay tax on the $40,000 that they received from the Shock-A-Dog Company. They are receiving demands from their Hong Kong distributor for $12,000 for merchandise for their retail outlet that they closed. They have received a demand from Pee Wee’s owner for $60 to replace the screen that they damaged and $120 for the broken vase, which they dispute. Bowser has given notice of a fraud claim for their misrepresentation of the “Gucci” collar that actually came from Hong Kong. It seems that the only one who is not turning on them is the Old Tom.


I advise the cats that the tort claims for the screen and the vase, the breach of contract claim by their Hong Kong distributor, and their attorneys’ claim for legal services are dischargeable, but the unpaid taxes and fraud claim are not (if fraud is established). Satisfied with this advice, the cats ask if they can borrow $1,500 to hire a bankruptcy attorney. I inform them that loans are dischargeable in bankruptcy. They assure me that they would never do that. I write them a check for $1,500 and have them sign a promissory note. I see them wink at one another as they take the check and begin looking online for bankruptcy attorneys.


Allen Drescher has practiced law in Ashland and Southern Oregon since 1973. His practice areas include real estate, business law, estate planning and elder law.

21 S 2nd St.
Ashland, OR.
(541) 482-4935

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Drescher Elson Sperber, P.C.

Drescher Elson Sperber, PC. A law firm providing legal services in Ashland and Southern Oregon since 1973 in the areas of real estate, business law, estate planning, small business corporations, LLC's, partnerships, nonprofit corporations, guardianships, conservatorships, wills, trusts, probate, leases, property and business transactions and disputes, and related areas of the law.21 South Second St. Ashland, OR 97520

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