Next time you look at your vehicle, visualize a pile of cash. Sure, it’s really a hunk of metal and other materials, but your vehicle can be used as a source of cash when you need it. How can you get cash from your vehicle? There are 2 main ways to do so: sell it [...]
Business owners are often advised to set up a limited liability company (LLC) in order to protect themselves should the business fail and require bankruptcy protection. In most cases, a business owners liability is then limited to the value of the shares they have in the company, not the debts themselves. An LLC is a [...]
Bankruptcy is an insolvency solution that will have a serious impact on your finances. It’s designed to help people with unmanageable debts who simply can’t afford to repay them within a realistic amount of time – and is basically considered a suitable approach only once all other potential solutions have been considered. However, if bankruptcy [...]
There are times when individuals and small businesses avoid bankruptcy like it was the plague. They often go to extraordinary lengths to avoid bankruptcy, including taking on more debt in order to clear old debt. This is a cycle that can often only be broken by an enforced bankruptcy petition – known legally as an [...]
While bankruptcy for businesses is often thought of as a death knell for that business, it can often be the first step to that business’s survival. A Chapter 7 bankruptcy for business will result in the business’s closure and the sale of all assets. However, a Chapter 11 or Chapter 13 bankruptcy petition allows a [...]
While bankruptcy can help to clear away debts and allow an individual to gain a fresh start, it does come with difficulties post bankruptcy. One difficulty that people face is that of starting a new business. Because your credit score is so low, finding finance for your new venture may be impossible. If you can [...]
There are times in business when you know that liquidation (Chapter 7 Bankruptcy) is the only way out. However, there are other situations where a reconstruction (Chapter 11 Bankruptcy) may be an option but in reality the business is better off folding. This is certainly true in small one person businesses where the business centers [...]
While individuals are generally required to file for bankruptcy under a Chapter 7 or Chapter 13 petition, small businesses have the option of either the Chapter 7 or a Chapter 11 petition. The Chapter 11 and Chapter 13 petitions are somewhat similar in that a repayment plan must be created that enable the debtor to [...]
When the word “bankruptcy” is mentioned in conjunction with a business, most people think of lost jobs and a business closing down. If sales are down, and the business is failing on income levels, then that may be the case. A Chapter 7 (or liquidation) bankruptcy will sell off all assets, pay off as much [...]
Filing for bankruptcy as a business can be a costly process. It is not uncommon for a Chapter 11 bankruptcy petition to reach costs of $50,000 or more – the filing fee is almost $1,000 on its own. You can, however, reduce these costs if you avoid some of the biggest mistakes made by businesses, [...]
Generally speaking, the process of placing a business into bankruptcy is fairly straightforward. If your business has been incorporated, then you can seek debt relief for your business under a Chapter 7 bankruptcy petition, or you can try and restructure your business by filing for protection under Chapter 11. For sole traders, you are treated [...]
Taking a business through the bankruptcy process is a serious business. In some cases, what effects one business may snowball and drive many others to similar situations. Chapter 11 bankruptcies are designed along the same lines as Chapter 13; the business pays what it can on its unsecured debts, often over three to five years [...]
According to Reuters, small business bankruptcies have continued to decline in the US. This makes it five consecutive quarters in which small business (those employing less than 100 staff) bankruptcies have dropped. This trend may well continue if economic forecasts are anything to go by. You can read the full Reuters article here. But what of [...]
While a lot of attention in being placed on individuals and their financial problems, small businesses are also struggling. When a small business reaches a stage where mounting debt is making the business unviable, filing a petition for bankruptcy may appear as the only solution. For many businesses, the problem is in deciding which Chapter [...]
Running a business can be a rewarding career for many people – for many others, it can be nothing but a nightmare with bankruptcy their only escape. With over 70% of new businesses failing within the first two years, the chances of success for most new businesses is limited from day one. If you’re in [...]
