Category Archives: Bankruptcy – Business
As a Bankruptcy Lawyer here in Kansas City I am often being asked by potential clients “should my business be considering Chapter 11 Bankruptcy during these very difficult times?” As one who has practiced in this area of the law since the 1980’s there are several basic guidelines any business owner should use to decide whether a consultation with a bankruptcy attorney is needed, even in good economic times. Given the Pandemic and disruption to the business cycle, however, this is now a good time for many businesses to evaluate whether these factors apply to its situation today. Below are among the most important indicators of whether Chapter 11 can be of help. Is the collateral pledged by your business toward its Bank Loan now worth less than the amount owed? This is a factor in most every business Chapter 11, however, it is especially relevant now. For example, if…
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The novel coronavirus continues to spread across the United States. Although shutdowns are not in effect nationwide, many companies are seeing a drop in regular business. Some of these companies recently filed for Chapter 11 bankruptcy. Although individuals can file under this Chapter, Chapter 11 cases are often called business bankruptcies. CEC Entertainment, the parent company of Chuck E. Cheese, recently filed for Chapter 11 bankruptcy. The company also owns Peter Piper Pizza, a separate pizza chain with locations on the West Coast and across the Southwest United States. Other well-known companies are feeling significant financial pressure due to the pandemic. GNC, a nationwide chain that sells health products and nutritional supplements, is also filing for Chapter 11 bankruptcy. The company said it plans to close more than 1,200 of its stores. Other large companies sought bankruptcy protection over the past several months. JCPenney, 24-Hour Fitness, Hertz, Gold’s Gym, J….
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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…
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