Category Archives: Bankruptcy – Business

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

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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When Management is the Reason Your Company is Struggling Financially

Eddie Lampert’s 4.8-billion-dollar Sears buyout announcement earlier this month comes amid the once-iconic corporation’s Chapter 11 bankruptcy filing. The bankruptcy, filed in October, allows for financial restructuring. Lampert personally stands to lose 2.4 billion if it fails. While the buzz around this latest headline is focused on Lampert’s intentions to possibly bleed the company of more money through the deal’s fine print, the fact remains: even in bankruptcy, Lampert is still in charge of a business he is widely accused of running into the ground. A Business Insider article reveals the intimate details of a small, private meeting between Lampert and a few mid-level employees, providing insight into a deeper level of dysfunction within the once-iconic company. The article describes employees’ fearful preparations moments before Lampert appeared on a screen at Sears Illinois headquarters. He joined the meeting from his Florida mansion. The employees were concerned about the words the…
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