Pendergraft & Simon, L.L.P. Legal Blog
Restructuring can reduce costs but can also lead to big expenses
Restructuring as part of a business bankruptcy filing can be challenging and beneficial. Your company can reduce its redundancies and operating expenses without necessarily sacrificing performance. Laying off or terminating employees with poor performance records or whose jobs overlap with someone else’s can eliminate hundreds of thousands of dollars in annual liabilities for the business,…
Can creditors stop you from discharging their debt in bankruptcy?
If your finances have reached the point where filing for bankruptcy seems like a good solution, then you likely have more obligations to pay each month than you have the income to cover them. This kind of financial situation can lead to aggressive collection activity, creditor lawsuits, repossession efforts and even foreclosure on your home….
What is a 363 sale in business bankruptcy?
The bankruptcy court may need to liquidate some assets when a business initiates bankruptcy proceedings. Any proceeds from the sale of those items go to cover some of the company’s debts. The bankruptcy court refers to the sale of these assets as a “363 sale” in reference to the similarly numbered section of the U.S. Bankruptcy…
Should debt be limited? Can young people avoid going into debt with more regulations?
Some estimates show that a quarter of people between the ages of 18 and 34 have at least $30,000 in debt. Approximately one out of every 10 owes over $100,000. This may include all kinds of debt, such as student loans, credit card debt, car loans and more. These statistics show that younger people often find…
Preferential transfers and payments and the bankruptcy trustee’s clawback powers
Whether you’re filing for personal bankruptcy or business bankruptcy protection, the process is designed to be as fair as possible to both creditors and debtors. While that has many meanings, one thing that can cause a lot of problems for both the debtor and others is the issue of preferential payments. Whether you’re filing for…
Alamo Drafthouse enters Chapter 11 bankruptcy
Alamo Drafthouse is a chain business based in Texas that is a combination of a restaurant and movie theater. This makes for a unique experience, which has led to the opening of multiple locations, but it appears that not all of those will stay open. Due to financial pressures in the current economy, the company is…
Protect your vehicle from repossession in Texas
If you’ve fallen behind on your bills and are trying to catch up, one of the things you may be worried about is having your vehicle repossessed. If you lose your vehicle, you could have trouble getting to work or taking care of your family. It’s important to take action if you cannot make your…
Why do businesses commonly face bankruptcy?
People often talk about why individuals face bankruptcy, citing things like high medical bills or the loss of a job. But what about businesses? They can also face bankruptcy, even if the owner is not personally bankrupt. Why does this tend to happen? As you can likely assume, the heart of the issue is different…
Partnership disputes and why they happen
A partnership dispute can be incredibly detrimental to the future of your business. Even if you and your partner can move beyond it and keep working together, that relationship may be damaged. In many cases, disputes are so problematic that one person has to leave the company entirely. Understanding how partnership disputes happen can help…
What type of bankruptcy is best for your sole proprietorship?
If your sole proprietorship is mired in debt and you’re considering bankruptcy, you have a choice regarding what type to file. Unlike corporations and other types of businesses, you have the option to file Chapter 7 or 13, which are most commonly used by individuals, as well as Chapter 11. Because the assets of the…
