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Filing for Chapter 11 bankruptcy can help businesses reorganize their debts while continuing operations. This process involves several legal steps and requires careful planning to meet state and federal requirements.  Businesses must follow both federal bankruptcy laws and any applicable state regulations. Preparing for the filing Before filing, a business must assess its financial situation. This includes reviewing outstanding debts, assets, and revenue streams. A business should also determine whether Chapter 11 is the best option compared to alternatives like Chapter 7 liquidation. Once the

Franchise businesses facing financial struggles may consider Chapter 11 bankruptcy to restructure debt and continue operations. The impact of Chapter 11 on franchise agreements can vary, depending on the terms of the contract and court decisions. Understanding how Chapter 11 influences franchise relationships is crucial for both franchisees and franchisors. Treatment of franchise agreements during Chapter 11 When a franchisee files for Chapter 11, the bankruptcy court decides whether the franchise agreement remains in effect. The franchisee can either assume or reject the agreement. Assuming

Chapter 11 bankruptcy offers business owners the chance to reorganize their debts and continue operating. However, it can raise genuine questions about the future of commercial leases.  For entrepreneurs in Maryland, understanding how Chapter 11 bankruptcy impacts commercial leases is important for making informed decisions during the restructuring process. What happens when you file for Chapter 11 bankruptcy? When a business files for Chapter 11 bankruptcy, an automatic stay immediately goes into effect. This stay prevents creditors, including landlords, from taking any action to collect

If your business is in serious financial trouble, filing for Chapter 11 bankruptcy could give your enterprise a fighting chance to survive by reorganizing your company and your debts. Creating a reorganization plan for your business is part of this process. While you may anticipate that you can create your own plan, there will be other parties who could have the opportunity to compose competing plans to yours. The debtor The debtor, namely the business that filed for bankruptcy, has the first opportunity to submit

Business owners unable to meet their debts may restructure their liabilities with a Chapter 11 bankruptcy. Unlike Chapter 7, which includes liquidation, Chapter 11 allows debtors to keep their existing assets. By filing for a reorganization through Chapter 11, businesses could become financially viable again. The United States Bankruptcy Code provides petitioners with 120 days to create a reorganization plan. The affected creditors form a committee and vote on the plan’s approval. Until the creditors approve the reorganization plan, a business exists as a “debtor

No doubt it is with a feeling of relief that you have decided to file for bankruptcy protection. However, if you want the bankruptcy process to go smoothly, you must be alert to potential problems. Here are five mistakes you must avoid. 1. Failing to list all creditors The law stipulates that you list all your creditors when you file for bankruptcy. Double-check to make sure you have not missed one. If you fail to list a creditor, your trustee may not discharge the associated

When Maryland residents fall into debt, you may come across debt collectors. These people work to ensure you pay your debts to the people you owe. Debt collection is a tricky field to navigate, though.  Sometimes, debt collectors are forceful. But the law prohibits them from harassing people they collect from. Is your debt collector harassing you?  What are examples of harassment?  The Consumer Financial Protection Bureau describes harassment by debt collectors. The Fair Debt Collection Practices Act (FDCPA) ensures that debt collectors cannot harass you.

People in Rockville may often be shocked to hear the news that a certain person or company has filed for bankruptcy, believing that certain individuals and businesses either are so successful or have such a strong market presence that facing financial struggles might seem an impossibility. Yet such news should serve as a stark reminder that no person or organization is immune from experiencing monetary difficulties. Such difficulties may be due to struggles to adapt to new challenges, or unforeseen circumstances that place people or

When businesses in Rockville are forced into bankruptcy, it is rarely due to one single reason. Rather, a unique (and unanticipated) confluence of factors contributes to it experiencing financial struggles. Oftentimes alternative revenue streams may be available to offset major losses, but when a company specializes in a single service, finding other sources of funds can be difficult. Ultimately, bankruptcy might be the only option if a struggling company wants to stay in business.  One might think that if any company would be immune from