Social Media Accounts Included in Bankruptcy

In a Chapter 11 reorganization of CTLI, LLC, social media accounts became the core of the dispute. CTLI had been doing business as Tactical Firearm and incurred a debt to purchase a building so the business could expand to include an indoor firing range in Katy, Texas. The Debtor was ordered to release a Facebook and Twitter account to the creditor, but the owner argued that the accounts were personal and not business property.

In In re: CTLI, LLC, Chapter 11, Debtor,the U.S. Bankruptcy Court, S.D. Texas, Houston Division held that the accounts in question were business property and that a business’ social media accounts are included in the company’s bankruptcy estate. The court further found that the required transfer of the accounts did not violate privacy rights.

Special thanks to Joseph Jacobson (Law Offices of Joseph Jacobson, Dallas, Texas) for bringing this case to my attention.