Articles Tagged with liquidation

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When a business becomes unable to meet obligations such as employee salaries, day to day invoices, and bank debt, management may turn to Bankruptcy law to liquidate or reorganize. As a rule, Courts prefer reorganization over liquidation, provided reorganization would be viable, preserve jobs, keep assets productive, and enhance the local economy. To begin with though, the question of whether Bankruptcy is the best way to deal with business challenges depends on several factors, including:

  • The form of the business (sole proprietor, partnership, corporation, LLC, etc.)
  • Whether the person(s) behind the market are also personally liable for debts
  • The number, amount, and type of debts that were incurred by the company
  • Whether it makes more sense to close the business or to keep it running

There are three basic types of Bankruptcy available for businesses: Chapter 7 liquidation, Chapter 11 reorganization, and Chapter 13 reorganization for sole proprietors. Continue reading

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“90% of the credit cards lawsuits are flawed”

As the economy continues to sputter and consumers gasp for air, credit card issuers have been developing a strategy to cope with the chaos. Will they be offering longer terms? Lower interest rates? Perhaps rebates to long-time, loyal customers?

What? Me Worry?

Why bother trying to meet your customers half-way? If you’re a credit card issuer you have no downside. Are you out of money? Grab a taxpayer bailout.Have unemployment and bad debts skewed your risk profile? Jack up interest rates. Who’s going to stop you, right?