Category archive for ‘Small Business’ 
Why you need to file bankruptcy. . .
by Jay Jump on 3/04/10 | 1 Comment(s)
You can villify me later. For now, I need you to read and get some perspective. Pay attention because we’re going to move fast.
You need to file for bankruptcy.
Let me say it again for those of you who are still shaking your head.
YOU NEED to file for bankruptcy!
There, I gave you a little emphasis to Read more>>
Eastern District of Michigan’s Chief Bankruptcy Judge to Participate in Roundtable Discussion About Chapter 7 Bankruptcy Issues
by Drew Broaddus on 2/19/10 | 1 Comment(s)
On February 17, 2010, the U.S. Bankruptcy Court for the Eastern District of Michigan (which covers Detroit, Bay City, and Flint) posted a notice on its website regarding “A Late Afternoon Roundtable Discussion” to take place on Wednesday March 10, 2010 in Southfield, Michigan. The notice (available here) indicates that the discussion will be moderated Read more>>
What is Involuntary Bankruptcy?
by Drew Broaddus on 1/15/10 | 0 Comment(s)
Many of the entries on this site deal with the decision to file bankruptcy. (See here for examples). However, there are instances where an individual can be forced into bankruptcy when they have not actually filed a petition. This is called an “involuntary bankruptcy” and is covered by 11 U.S.C. Sec. 303. Such proceedings Read more>>
The Dangers of Personally Guaranteeing Business Debt
by John Rogers on 1/11/10 | 1 Comment(s)
The Wall Street Journal has a recent article outlining the perils of personally guaranteeing business debt. We often have clients that have done this, even putting up their personal home as collateral for business loans. When considering bankruptcy, it is very important to have all the loan documents available for your attorney to review so Read more>>
Small / Closely held Corporate Bankruptcy and Personal Guarantees
by John C. Colwell on 12/29/09 | 0 Comment(s)
In this continuing declining economy, our office is approached frequently by the small business owner. The owners of America’s small businesses are under the same ‘big’ company financial pressures. Oftentimes the pressure for the small businessman is higher, if that can be believed, due to the nature of the small business. A large corporation has Read more>>
What is Chapter 12 Bankruptcy?
by Drew Broaddus on 12/06/09 | 0 Comment(s)
At our firm, we advise every potential bankruptcy client about each chapter of the Bankruptcy Code that could potentially provide them with protection from their creditors. Although these discussions typically focus upon Chapter 7 (and, to a lesser extent, Chapter 13), one of the chapters we also mention is Chapter 12. This chapter is designed Read more>>
Supermarket Files for Bankruptcy
by Jay Jump on 11/18/09 | 0 Comment(s)
Penn traffic files for Bankruptcy:
Penn Traffic is the owner of a chain of regional supermarkets on the east coast. Today, according to Reuters, they filed for Chapter 11 bankruptcy in Delaware.
This is a significant problem in our society if you haven’t already considered it. Small businesses across the country have been cut off from Read more>>
In-Kind Exemptions and the ‘Super’ Schedule C
by John O'Connor on 10/15/09 | 1 Comment(s)
Under normal circumstances, a debtor claiming and exemption is limited by the statutory dollar amount that their jurisdiction imposes on the type of asset they are seeking to protect. For instance, North Carolina law allows a married couple filing a joint case to protect up to $37,000 of equity in their home. A couple who Read more>>
When is Bankruptcy an Option for a Small Business?
by Drew Broaddus on 9/11/09 | 0 Comment(s)
A number of the individuals who have recently contacted our office about possible personal bankruptcies have also had issues with a struggling small business. When is bankruptcy an option for a small business? The first question to ask is whether the business is a corporation, a partnership, or a proprietorship. Corporations, limited liability companies Read more>>
Priority of Tax Liens
by Richard O'Connor on 8/03/09 | 0 Comment(s)
As part of the 2005 amendments to the Bankruptcy Code, Congress essentially eliminated a Trustee’s ability to subordinate tax liens in a Chapter 7 filing. See 11 USC 724(b). Although fortunate for holders of secured tax claims, remaining secured creditors are now almost always forced to take a back seat to perfected Read more>>
