Category Archives: Bankruptcy – Business

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

These Three Financial Mistakes Could Ruin Your Business

Being an entrepreneur is more difficult than many people realize. It involves hard work, an innovative streak, and many sleepless nights. Simple mistakes can overtake your best efforts and put your business in financial jeopardy. Here are a few of those mistakes and some solutions an experienced bankruptcy attorney may provide: Mismanaging Start-up Loans/ Financing Securing capital is the first step in creating a startup. Whether that capital comes from family members, friends or strangers, producing a return is expected. Not delivering on those returns could land your business in trouble with its investors and securities laws. A business workout could help avoid this conflict. This out-of-court solution may allow businesses to negotiate new terms for an investment.   Failing to Make Equity Arrangements and Vesting Schedules Vesting schedules guide how business founders earn shares over time, and equity arrangements formalize the stakes each founder has in a business. Without…
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What Happens If a Business Partner Declares Bankruptcy?

Running a business is full of challenges. If you run a business – which is probably the case since you’re reading this – it’s very likely that you’re familiar with just how challenging it can be. Things can be going great – operations are running smoothly, you’re reaching all of your financial goals – and you can still run into problems outside the realm of your control. For example, you could be going through your business’ mail one day and come across a bankruptcy notice from one of your main suppliers. What does this mean for your business? Will you still be able to do business with this supplier? Are there steps you need to take to avoid financial loss? When dealing with a business partner’s bankruptcy, several factors determine your available options. If they are filing for Chapter 11 bankruptcy, then their business remains in control of its possessions…
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Bet You Didn’t Know that GM’s Bankruptcy Saved the Iconic Corvette

The Chevrolet Corvette is an icon of the American automotive industry. The latest generation of Corvettes—the C7—is considered one of the best examples of the legendary car to date. But would it surprise you to learn that the C7 was almost never produced? Today we are going to explore the history of this iconic vehicle, and how bankruptcy played a part in its salvation. Saving the Chevrolet Corvette: A Tale of Chapter 11 Bankruptcy Success Known for its sleek body lines, powerful engine and sporty stance, the Corvette has always been at the center of American motorsport. That being said, the car is also no stranger to adversity. In the early 1990s, GM had fallen into rough financial times, so executives cancelled the Corvette program. Luckily, a group of dedicated individuals made a desperate attempt to save the car from corporate destruction. It worked, and the Corvette continued to be…
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