If your business has taken on heavy debt that could easily become unmanageable, then you may have a number of debt relief options. For many businesses, Chapter 11 bankruptcy is too costly and time-consuming to make economic sense. For other companies, however, Chapter 11 offers the protections needed to get the business back into profitability.
In California, employers of any size have to comply with state and federal employment laws, and certain employers are subject to additional regulations and requirements.
Since the end of the Great Recession, the number of individuals and businesses filing for Chapter 11 bankruptcy has declined significantly. However, a recent survey of 165 bankers, fund managers, lawyers and other restructuring professionals suggests that the United States may see an uptick in Chapter 11 filings in certain industries.
Before filing for bankruptcy, business owners should explore every available out-of-court option for dealing with the debt. Going to bankruptcy court can be costly, and it is important to get comprehensive legal advice before taking that step.
If your business is having debt troubles and facing possible insolvency, then it is important to be aware of every debt relief option. While filing for bankruptcy is appropriate in many cases, debts can also be settled without going to court.
Whether you're a business owner with heavy debt, a creditor seeking to collect, or a bankruptcy trustee, it is important to know how the Chapter 11 bankruptcy process works and how the case will be monitored by the court.
There is always risk in starting or purchasing a business. If things don't go as planned and your business is facing insolvency, then the bankruptcy system in the United States provides options for a fresh start. Bankruptcy can be a key component in helping business owners keep their companies intact or move on to new opportunities.
Businesses that are restructuring through Chapter 11 bankruptcy may have to address a range of liability issues not only from creditors in the business world, but also from current and future personal injury claimants. Complex legal factors have to be considered before a judge decides that Chapter 11 protects a company from future injury claims, such as those being pursued against Energy Future Holdings Corp.
Bankruptcy and other insolvency-related matters can be extremely complex, especially if there are many parties involved. Whether you're a creditor, debtor or trustee, a single slip-up could expose you to costly liability, and it is crucial that you have experienced legal counsel to identify the important issues and aggressively protect your interests.
Investors and creditors were hoping for more information on the recent Chapter 11 bankruptcy filing by GT Advanced Technologies Inc., which had plans of manufacturing synthetic sapphire for use in Apple Inc.'s new smartphone screens. However, a confidentiality agreement with Apple prevents GT from discussing the details of the supply and financing arrangement between the two companies.