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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When it comes to the topic of bankruptcy, you can often hear a lot of negative stories. This is pretty understandable considering that bankruptcy is a process to help individuals and businesses overwhelmed by debt. But by that same token, bankruptcy has often been the first step of getting people on the track to financial success. Do not believe us? Here is a Missouri business that blossomed out of the ashes of a bankruptcy. From Bankruptcy to $40 Million! Living in California, Jenny Doan and her husband were living a modest middle-class life. However, their youngest son developed a lymph node tumor. The medical crisis forced the child to undergo many expensive medical treatments. Luckily, the tumor proved benign, but the resulting medical bills proved to be crushing. The family chose to file for bankruptcy. Between the cost of living in California and the cost of repaying their debts, the…
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Business Insider recently published an article on how Chapter 11 bankruptcy cases increased by 63 percent since last March. The article used bankruptcy filing data published by the American Bankruptcy Institute (ABI). According to the data, there were 770 Chapter 11 filings this past March. There have not been this many Chapter 11 cases filed in a single month since April 2011. Why are so many Chapter 11 cases being filed? Part of the reason is because many businesses with physical locations, such as shopping mall retailers, are struggling to remain profitable. Brick-and-mortar businesses, as they are sometimes called, are experiencing severe financial difficulties. We wrote a recent blog on Toys ‘R Us that went into more detail on why these stores are struggling. Why Should Businesses File for Chapter 11 Bankruptcy? Businesses may benefit from Chapter 11 bankruptcy if they are struggling financially. In fact, Chapter 11 may give…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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