Category Archives: Bankruptcy – Business

The Sader Law Firm can help businesses file for Chapter 7 and 11 bankruptcy to restructure and erase debts.

Chapter 11 Bankruptcy Could Help You Save Your Business

The changing economy can take its toll on businesses of all sizes. Unfortunately, weathering a changing economy can be difficult, especially for small businesses that have little room for error. Some businesses become stuck in debt and the financial stress can seem overwhelming for business owners. Struggling business owners should consider all available legal options for resolving their situation. With the right solution, you can save your business. Chapter 11 bankruptcy is an option to consider. Is Your Business in Trouble? While businesses can correct some difficult financial issues, other types of problems may be more difficult to solve without assistance. If you notice these warning signs, call an experienced Kansas City business bankruptcy attorney.  Cash flow crisis Personal assets at risk Large amounts of debt Sales in decline Employee layoffs Can Chapter 11 Bankruptcy Save Your Business? Through Chapter 11 bankruptcy, you can protect your business from creditors. Consider these additional benefits Chapter…
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Why Small Businesses Will Have an Easier Time with Bankruptcy Starting Next Year

Operating a small business is no minor feat, especially in today’s economy. Many small business owners are already aware that the statistics are not in their favor. According to the Small Business Administration (SBA), the average survival rate of a small business at five years is only 48.2 percent. Debt plays a major role in these numbers. President Donald Trump recently signed the Small Business Reorganization Act. The law simplifies how smaller businesses can use Chapter 11 bankruptcy. Here is a brief overview of what small business owners need to know. What Is the Small Business Reorganization Act? The Small Business Reorganization Act adds a new subchapter to Chapter 11 bankruptcy. This new subchapter makes it easier for small businesses to use Chapter 11 bankruptcy if their liabilities do not exceed $2,725,625. Small business owners will have an easier time retaining ownership and reorganizing under the new law. Under this…
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Chapter 11 Bankruptcy Could Help Sears Survive

Sears was recently granted a $5.2 billion reorganization plan. Under the plan, Sears can continue operating 425 department stores. The plan also allows 45,000 workers to keep their jobs. Chairman Eddie Lampert entered Sears into Chapter 11 bankruptcy in October. Lampert’s bid fought opposition from several unsecured creditors, including mall suppliers and owners. These creditors tried to stop the sale and requested for liquidation of the company. U.S. Bankruptcy Judge Robert Drain for the Southern District of New York rejected the creditors’ claims. He disagreed that the sale would shut out other parties who wanted to purchase the company, and he rejected the idea that Sears has more value to creditors if it failed. Sears argued that the sale was the best solution, and they explained the need to save thousands of jobs. Although Sears’ long-term fate is murky, Chapter 11 bankruptcy will help provide the retailer a lifeline while…
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