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 [...]
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 [...]
When a business files for bankruptcy, it has a choice of filing a Chapter 7 (also known as a liquidating) bankruptcy, or a Chapter 11 (also known as a reorganization) bankruptcy. Under some circumstances, the business may be able to file a Chapter 13 bankruptcy, and while this is similar to a Chapter 11, there [...]
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 [...]
If you own a business and that business starts to have financial difficulties, you have the choice between a Chapter 7 or Chapter 11 petition for bankruptcy. Under the Chapter 11 petition, the business is allowed to continue trading while a reorganization plan is put in place. This plan has to be approved by the [...]
Most people relate bankruptcy to either business going bust or to poor people who cannot afford to pay their bills. Those same people question the need for the wealthy to file for bankruptcy – after all, they are wealthy, right? If you were to take a simplistic view, then yes, they may be wealthy or [...]
Businesses that become nonviable often complete their days in the bankruptcy court, often under a Chapter 7 petition. This is known as a liquidation bankruptcy and as the name suggests, all assets are liquidated with the funds distributed to creditors. There are rare situations where the owner gets to walk away with a little cash [...]
The most common form of bankruptcy for any business is what is known as a Chapter 11 petition. Under this Chapter, a business is allowed to continue trading while it tries to restructure itself to become more profitable. Like other forms of bankruptcy, the Chapter 11 petition provides benefits that prevent creditors from taking any [...]
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 [...]
