Everyone knows that in the event payments are missed, there has been a default. However, many business people overlook the fact that there can and often are other contract provisions that do not involve the payment of money which can trigger a default. These are known as non-monetary defaults.Bank loan agreements, leases, and other types of commercial contracts provide for events of … [Read more...]
Winding Down A Business the Right Way: Successor Liability
June 2, 2011 By
Many of our clients are self-employed individuals who own and operate a business experiencing financial difficulties.They often contact us with the idea of forming another company so that they can continue operating from the same address, using the same phone numbers, employing the same staff, and serving the same customers with minimal business interruption.This is sometimes easier said … [Read more...]
Reorganizing a Small Business’s Finances
March 21, 2011 By
We frequently advise clients who own a small business and find themselves unable to pay either their personal debts, or those of the company.Some of the company’s debts may be personally guaranteed by the individual owner(s). These clients often want to discuss filing a personal bankruptcy in order to deal with their own debts, and also want to file a bankruptcy for their business in … [Read more...]
When Your Business Fails, Does Your Spouse File for Bankruptcy?
March 3, 2011 By
We certainly we have many husband-and-wife business owner clients who are in personal and/or business bankruptcy. This article from the Wall Street Journal addresses the issues we see them face as "copreneurs." Glenn Muske, a small-business specialist at North Dakota State University, has studied copreneurs for nearly 15 years. In the worst cases he's seen, the stress "took down the business … [Read more...]
Can Bank Failures Lead to Business Bankruptcy?
December 8, 2010 By
Sure, your commercial bank is FDIC insured. Does that give you any peace of mind when you're trying to renegotiate your loan or line of credit?It shouldn't. We are aware from our clients that when the FDIC becomes involved, it’s ever so much more difficult – if not impossible – to get anywhere on a forbearance, modification, refinance, or other issues affecting commercial … [Read more...]
Small Business Bankruptcy Basics
October 30, 2009 By
My friend and fellow bankruptcy attorney Susanne Robicsek and I recently spoke to a group of local small business owners gathered at Central Piedmont Community College in Charlotte, North Carolina. In this tough economy business owners are wise to acquaint themselves with the legal options they may need to employ if their companies hit the shoals. It was a pleasure spending an afternoon trying … [Read more...]