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Call: 888-297-6203 When it becomes clear that your start-up firm has to wind down, what can you or should you do? Shutting down an insolvent firm offers a difficult task for the entrepreneur since you must respect the legal rights of creditors while minimising the harm to the founders and workers. First, some fundamental ideas: An bankrupt corporation's board of directors has a duty of allegiance to the creditors, not the owners. Prior to the claims of the company's stock holders, creditors are paid. Some creditors can lawfully be paid by management, but not others. It relies on [...]

Call: 888-297-6203 The most difficult decision for a small business owner facing bankruptcy is whether or not the company has a future. You need to establish the following facts in order to go forward: What led to the issues the company is currently experiencing? Exist any chances for improvement? Can bankruptcy lead to change? Reorganization restrictions Reorganization cannot establish a market, boost gross sales, or correct a mismatch between the talents on hand and the ones needed to operate the firm. Reorganization could allow for the rejection of leases or contracts that are no longer advantageous (such as [...]

Call: 888-297-6203 A good query! When does it make sense for a company to file for bankruptcy, given that a corporation doesn't receive a discharge under Chapter 7? Why not just shut the doors, liquidate the assets, and let the state declare the corporation to be dissolved? Positive aspects of corporate bankruptcy Under our opinion, a corporation should only file a Chapter 7 petition in the following two circumstances: When an asset that may be used to pay obligations for which the shareholders or executives are personally accountable, such as trust fund taxes, is about to be encumbered [...]

Call: 888-297-6203 #1 Myth: There is no longer bankruptcy relief available. Almost all of the bankruptcy relief that was available before the law changed in 2005 is still preserved in the current bankruptcy statute. It is a little more complicated and pricey than it was before the "reform," but it still functions. #2 Myth: If you are employed, you cannot declare bankruptcy. The new "means test" is intended to prevent some filers from filing under Chapter 13 if their income is higher than the median income for households of their size in their state of residence. You must [...]