Board Certified Specialist in Bankruptcy
While Chapter 11 bankruptcy is not as frequently employed as Chapters 7 and 13 it is appropriate in some circumstances. This post, along with the first part in the series, will answer many frequently-asked questions about Chapter 11. Q: What questions does Mitchell & Culp, PLLC ask a prospective Chapter 11 client to determine whether they should “collapse the company” or restructure in … [Read more...]
Chapter 11 bankruptcy cases by large corporations like bookseller Borders make the news more frequently than smaller companies using Chapter 11, leaving some business owners wondering whether Chapter 11 is an option for them.Chapter 11 is not as straightforward to explain as Chapter 7 or Chapter 13, so we designed this FAQ: Q: How "big" does the owner's business have to be to even consider … [Read more...]
A recent economic report focused on the outlook for small businesses. It highlighted several sectors that are important in the Charlotte region. ...cost and pricing pressures will need to be managed differently depending upon which industry a small business operates. Summarizing these differences for several key industries:The construction industry will face higher costs combined with lower … [Read more...]
While most people have some familiarity with the concept of bankruptcy under federal law, many people are unaware of the concept of receivership under North Carolina law. What is receivership? In a receivership, the debtor’s affairs are generally wound down and the debtor dissolved (if it is a corporate entity); however, it is possible for the debtor to regain control of its financial … [Read more...]
When we engage small business owners in a bankruptcy counseling session we often ask, how much revenue does the business need to simply break even: pay its debts and obligations (including payroll and taxes) as they become due? Often, the owner sitting across from the table from us has no idea how to answer that question.This Q&A on small business finance should be read by all small … [Read more...]
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...]
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...]
Dealing with Charlotte small business owners with financial difficulties, I see every day how shrewd money management would have helped them stay afloat. This goes beyond looking for discounts and going without.A recent article in Inc. magazine talked about some techniques that used to be available only to large companies that have become affordable for some smaller companies. The article … [Read more...]
Despite the bulls on Wall Street, smaller companies are simply unable to tap new financing as easily as large corporations. Midsize companies that can't borrow at a scale that interests investors, and according to the WSJ, those firms are "already saddled with the weakest credit ratings." It's even worse for small businesses that depend on their local lenders. This weekend on Carolina Business … [Read more...]
I recently saw an article quoting an American Express Open poll that only half of small business owners reported paying themselves a salary.That's bad, but gets worse when you learn how little they pay themselves; 44 percent earn less than $50,000.If the business owner can’t pay him or herself for any extended period of time, then something’s wrong. You can't hide problems with … [Read more...]