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Convertible Note Issue — co-founder leaving before cliff

Started by InsuranceGuy_FL · Aug 20, 2025 · 1,023 views · 18 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
IG
InsuranceGuy_FL OP

I'm in a difficult situation and trying to figure out my next steps.

co-founder leaving before cliff. I've been dealing with this for about 10 months now and the situation isn't improving.

I have already consulted briefly with a lawyer but got conflicting advice.

What's the typical outcome in situations like this?

CM
ContractorMike_CA

Been there. Here's what I learned.

What worked for me was escalating to a supervisor/manager. It took 1-3 months but was worth it.

RM
RestaurantOwner_Miami

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.

AB
anon_buyer_TX

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

NH
need_help_renter_advice

Have you tried reaching out to your state's bar association? They sometimes have free resources or mediation services.

RM
RestaurantOwner_Miami

Not a lawyer, but I have direct experience with this.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

RE
RemoteWorker_EU

Not a lawyer, but I have direct experience with this.

What worked for me was escalating to a supervisor/manager. It took 1-3 months but was worth it.

FT
first_time_dev_IL

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

TH
throwaway_homeowner_NY

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

TL
Mod_TermsLaw Moderator

I specialize in this area of law. Here's my take on the legal issues.

The key question is whether the applicable statute of limitations has run. Depending on your jurisdiction, you typically have the relevant statute years for this type of claim.

I'd recommend documenting everything in writing from this point forward. Keep copies of all communications.

SB
SmallBizOwner_NYC

I've seen this play out several times in my field.

What worked for me was filing with the appropriate government agency. It took 4-8 months but was worth it.

NH
need_help_freelancer_2025

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

HM
help_me_employee_WA

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

AB
AgentBroker_TX

I've dealt with this before.

What worked for me was escalating to a supervisor/manager. It took 1-3 months but was worth it.

HM
help_me_investor_advice

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

PB
PatentAgent_Boston

I've seen this play out several times in my field.

I ended up filing with the appropriate government agency, which cost about $4-8 but saved me a lot more in the long run.

RM
RestaurantOwner_Miami

Not a lawyer, but I have direct experience with this.

I ended up escalating to a supervisor/manager, which cost about $1-3 but saved me a lot more in the long run.

CA
ConsumerAdvocate

I've seen this play out several times in my field.

The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.

AP
anon_parent_FL

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

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