If you operate a business, will be filing bankruptcy, and prefer not to pay a prior employee, take action so that debt is not a priority debt. Imagine that in the near future you’re closing down a business and filing bankruptcy. You owe an employee or independent contractor back wages or commissions. But you’d rather not pay that debt … Read More
If you’d like to pay a prior employee or independent contractor recent wages or commissions, Chapter 13 can help you prioritize that. Our last three blog posts have been about debts you owe to your employees or independent contractors. Specifically, we discussed the conditions under which past wages, commissions, or benefits qualify as a“priority” debt. These posts covered: the … Read More
If you operate or used to operate a business and are considering filing bankruptcy and would like to pay an employee, the law can help you. Our last two blog posts were about debts owed to your employees or independent contractors. Specifically we discussed the conditions in which past wages, commissions, or benefits qualify as “priority” debt. Two weeks … Read More
A debt for an independent contractor’s commissions can be a priority debt, but only if the contractor meets an extra, tough condition. Our last blog post was about conditions in which wages, commissions, or benefits owed to an employee are “priority” debt. But what if your debt was not to an employee but an independent contractor? Especially in today’s … Read More
Debts for wages, commissions, and employee benefits may be priority debts, more likely paid. It depends on the timing and amount of the debt. Our last dozen blog posts have been about “priority” debts. These are special unsecured debts that bankruptcy law treats better than the rest, called “general unsecured” debts. (Secured debts are a third main category … Read More
Here are the factors for determining whether a business lease is treated as a true lease in bankruptcy or rather as a secured purchase.
A business leases may not be a true lease but rather recharacterized as a secured purchase, giving you significant power over the creditor.
With business leases you have the same options in bankruptcy as with consumer leases: to “assume” or “reject” the lease.
If you owe an employee wages or benefits, it’s likely a priority debt. Same if you are owed wages or benefits. More likely to be paid.
Chapter 11 is a powerful way to address a business debt crisis, but because of its detriments must be used extremely selectively.
If you have a business that you need to continue of operate, choosing the right form of bankruptcy involves risks and opportunities.
Would your small business thrive if you could just get some relief from your creditors? Especially the tax collectors? Consider Chapter 13.
If you’ve decided to close down your business, or would if you could avoid its debts, or had a way to pay its taxes, consider bankruptcy.
Would your small business thrive if you could just get rid of, or at least get better payment terms on, your overdue taxes?
If a lawsuit against your small business is draining your time and money, Chapter 13 can encourage the favorable settlement of that lawsuit.
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