Tag Archives: Business

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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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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Warning Signs that Your Small Business May Need to File for Chapter 11 Bankruptcy

Starting a business is a difficult and trying endeavor. The American Bankruptcy Institute reported that over 24,000 businesses filed for bankruptcy in 2016. That is no surprise considering around 45 percent of companies do not make it to their fourth year of business. However, bankruptcy is not the end of a small businesses, and filing can actually have benefits. Here are some of signs that you may need to consider filing Chapter 11 bankruptcy for your business: You are Experiencing a Cash Flow Crisis If you are having a bad month or quarter, then you may be able to see the light at the end of the tunnel. There are ways to cut expenses to help create more cash flow. But if several clients are paying late, you are several payments behind with suppliers or facing creditor collection actions, then you may want to consider bankruptcy as a solution. Your…
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