Business Bankruptcy

When a person or business files for bankruptcy, it triggers an automatic stay, a legal requirement (injunction) that all creditors cease trying to collect overdue sums or to seize property for nonpayment of bills. This legal protection of debtors must be obeyed by creditors or they could face penalties. If you are a creditor, knowing… Read more

There are always risks to business ownership such as global economic factors that are impossible to control. That has resulted in business bankruptcies trending upward, with a 13 percent increase in filings over last year. The decision to seek bankruptcy protection is not taken lightly. Bankruptcy has long-term implications for your finances and your reputation,… Read more

Successfully completing Chapter 11 bankruptcy should be celebrated. It’s the end of an exceptionally tough period for a business owner – tough but reaffirming. It takes strength and a clear vision of your future to make it through the process. Having trusted partners beside you during and after your bankruptcy is key. These are people… Read more

When a person or business falls on hard times financially, bankruptcy is an option for resetting the balance sheet. The penalty for declaring bankruptcy can be the loss of physical possessions through liquidation as well as the black mark on their credit score, which can last many years, preventing them from borrowing money and rebuilding…. Read more

Getting back on your feet financially after a bankruptcy is a long-term project. Having a plan for recovery and growth is key. A bankruptcy stays on your credit report for years after the process is completed. That kind of “ding” announces to potential lenders that you made mistakes, that lending to you is risky, and… Read more

Chapter 11 bankruptcy is the method most often used by businesses that seek to continue operating. Called “reorganization bankruptcy,” the focus is on trimming unnecessary expenses and developing a profitable plan for moving forward. Businesses in Chapter 11 usually have many relationships to navigate in the process of reorganizing, including: What is an Executory Contract?… Read more

Extending a businesses’ lifespan requires tinkering to maintain solvency. Over time, a lot of effort goes into staying abreast of industry fluctuations, changing officers, negotiating contracts, and keeping costs down. These tasks are all necessary to staying vital. Companies that can’t keep up with the necessary changes may lose money or viability. When the situation… Read more

Chapter 11 bankruptcy provides companies an opportunity to restructure and return to profitability, but maintaining liquidity through lines of credit and loans during bankruptcy is a challenge. Liquidity and cash flow are the engine and fuel of business. Without a regular infusion of cash, it’s impossible to place orders, make payroll, advertise, invent, or expand…. Read more

Filing for bankruptcy doesn’t always mean a business will close – and it doesn’t mean all debts go away. Many companies and sole proprietorships resort to bankruptcy to reorganize while working to stay afloat. Discharging debt is a part of bankruptcy that allows a business to recover and keep moving forward.  Read on to find… Read more