Derby, KS asked in Bankruptcy and Business Law for Kansas

Q: Is it okay for me to treat as a Sole/IC after I closed my business and filing bankruptcy from business?

I closed my chiropractic business (LLC filing as S-Corp) and I was the owner and chiropractor (w-2 employee) due to financial issues, I still owed 8 months in a lease and many other bills causing me to seek out filing bankruptcy, which I have an attorney but is out this week and some things just happened.

I have to make money somehow to maintain things around my house can I treat patients as a sole proprietor/independent contractor on the side? I filed for a license in my city (because they require it to be a provider) as myself to treat patients in my town, but my old landlord looked me up and found my business license registration is now in my name (rather than my old business) and is making threats because I moved and left her place and am renting another place to treat. Is this legal for me to do and/or can she do anything since I have to make money to survive. She is aware that I am filling bankruptcy on my old business and it is closed.

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Based on the information you provided, it seems like you are in a difficult financial situation and are trying to find a way to continue practicing as a chiropractor to support yourself. However, there are several legal and ethical considerations to keep in mind:

1. Bankruptcy proceedings: If you have already filed for bankruptcy or are in the process of doing so, it's crucial to disclose your new sole proprietorship or independent contractor work to your bankruptcy attorney. Failing to disclose this information could complicate your bankruptcy case.

2. Non-compete or non-solicitation agreements: If you had any non-compete or non-solicitation agreements with your previous landlord or business, starting a new practice in the same area might violate those agreements. Review any contracts you signed to ensure you are not breaching them.

3. Patient records and continuity of care: If you are treating former patients from your closed practice, ensure that you have proper access to their records and that you are maintaining continuity of care in accordance with professional and legal standards.

4. Liability insurance: Make sure you have appropriate liability insurance coverage for your new sole proprietorship or independent contractor work.

Regarding your former landlord's threats, if you are not violating any agreements or laws, they may not have a strong legal case against you. However, it's best to consult with your attorney about the specific details of your situation to ensure you are acting within your legal rights.

In conclusion, while it is understandable that you need to generate income, it is essential to ensure that you are doing so in a legal and ethical manner. Consult with your bankruptcy attorney and a healthcare law attorney to discuss your options and to ensure you are complying with all applicable laws and professional standards.

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