PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

Small Businesses Continue to File for Chapter 7 Bankruptcy Protection

With today's economy still lagging, small businesses continue to turn to Chapter 7 bankruptcy to liquidate their outstanding debts.

2011-06-12
June 12, 2011 (Press-News.org) Under bankruptcy law, both individuals and businesses may file for Chapter 7 debt relief. With today's economy still lagging, small businesses are still turning to Chapter 7 to liquidate their outstanding debts. While individuals seeking Chapter 7 protection typically get a fresh start, the result of filing is very different for businesses, which many times must sell off any assets and shut down. A business owner should consult an experienced bankruptcy attorney about the potential impact and outcomes of Chapter 7 bankruptcy before filing.

Bankruptcy Trends

In 2010, there were more than 1.1 million Chapter 7 bankruptcies. This was an eight percent increase from the over one million Chapter 7 filings in 2009. Business bankruptcies usually account for a small percentage of the total annual bankruptcy filings in the U.S. There were 56,282 businesses that filed for bankruptcy in 2010, which was a seven percent decrease from the 60,837 filings in 2009. Although it is difficult to isolate whether businesses are actually doing better, these recent trends show that many are still suffering.

Filing Chapter 7

According to bankruptcy law, businesses may file Chapter 7 to help eliminate unsecured debts. If a business qualifies and files for Chapter 7 debt relief, the bankruptcy judge assigns a trustee to liquidate any assets and administer profits to the creditors. Both administrative and legal fees are paid before these creditor distributions. Company shareholders are not guaranteed any payments after a business files for bankruptcy, but if any money is available after all debts are paid off, they may try to claim a settlement.

Impact on Businesses

Bankruptcy trustees may allow some businesses that file Chapter 7 bankruptcies to operate for a short time, but these businesses typically close after all assets are sold and disbursed. However, some divisions of larger companies may be sold as part of the liquidation phase, so a number of employees may be able to keep their jobs despite the bankruptcy filing. In addition, if employees must be laid off, any claims for wages, salaries and commissions are among the first to be paid when the trustee doles out proceeds from liquidation sales.

Bankruptcy Preparation

If you are currently a business owner considering a Chapter 7 bankruptcy, you should consult a local bankruptcy attorney before filing to ensure that it is the best option for you and your business.

Article provided by Pelley Law Office, L.L.P
Visit us at www.pelleylaw.com


ELSE PRESS RELEASES FROM THIS DATE:

Appeals Processing From Immigration Court Decisions

2011-06-12
Each year, I consult with hundreds of individuals who have been ordered to leave the US by Immigration Judges. In the vast majority of these cases, the person had applied for some form of relief from removal, such as asylum, and the Immigration Judge denied the claim and either granted the person voluntary departure or simply ordered deportation. The Immigration & Nationality ACT (INA) sets forth procedural rules applicable to appealing decisions of Immigration Judges through the US Department of Justice; and appealing those decisions to the US Courts of Appeal. In ...

ICE Arrests Continue Under The Obama Administration

2011-06-12
Despite widespread and, in some cases, high-profile outcry against the detention and deportation of certain undocumented immigrants in the US, US Immigration and Customs Enforcement (ICE) has been stepping-up arrest and detention levels of immigrants in the US to levels unseen even during the Bush administration. Many of these arrests have come about as a result of well-publicized "worksite raids," where ICE has been targeting manufacturing, construction and food service industries for large-scale assaults designed to round up multiple "undocumented aliens" ...

Know What to Expect in Your Texas Personal Injury Case

2011-06-12
Although no two personal injury cases in Texas will ever follow exactly the same path, there is a progression of general stages that almost every claim will go through. Should you choose to pursue a personal injury claim, your lawyer can explain the process in greater detail and apply it to your unique circumstances. But, after suffering an injury, many victims wonder just what will happen in the course of their personal injury suit. Having a basic sense of what to expect can help put your mind at ease and allow you to make informed, thought-out decisions. Pre-filing Some ...

Abbie Dorn Case Highlights Challenges of Disabled Parents Seeking Custody or Visitation

2011-06-12
Earlier this year a California judge heard the tragic case of a paralyzed, semiconscious mother of three who, according to her parents, is being denied a relationship with the children whose delivery nearly killed her. Three years ago, expectant mother Abbie Dorn headed to the hospital in labor with triplets. While two of the children were delivered without incident, before the third could be born, the doctor inadvertently slashed Ms. Dorn's uterus while performing a Caesarean section. The resulting blood loss caused heart failure, and malfunctioning medical equipment prevented ...

Problematic DUI Detection in Utah

2011-06-12
The Utah Commission on Criminal and Juvenile Justice reported 15,285 arrests for driving under the influence in 2010. Utah police use a machine called the CMI Intoxilyzer 8000 to take a breath alcohol content reading (commonly known as a breathalyzer test) of a driver suspected of driving under the influence of alcohol. This breath sample is analyzed and converted into a blood alcohol concentration. Breathalyzer test machines were developed in the 1950s as an alternative to what many believed was an overly-invasive blood test for BAC. Over the years, lawmakers and law ...

New Arizona Law Removes Jury Trial Option for First-Time DUI Offenders

2011-06-12
A recently approved Arizona bill -- that has not yet been signed into law -- will ease potential penalties facing those charged with driving under the influence of alcohol or drugs for the first time. Those lessened penalties come with a steep price tag, however. In exchange for reduced consequences, offenders lose the otherwise automatic option of choosing a jury to hear their case at trial instead of a judge. First-time DUI defendants would still have the right to request a jury trial, but instead of their request being granted, it would be decided upon by the trial court ...

Chapter 7 or Chapter 13 Bankruptcy?

2011-06-12
If you are watching your finances and growing more concerned with each passing day, you may want more information on how to go about filing a bankruptcy. You may have heard of Chapter 7 and Chapter 13, but might not really understand the difference. This article is designed to help. Chapter 7 Chapter 7 is frequently referred to as providing a "fresh start." It does this by discharging most debts (some obligations can't be discharged, such as student loans.) A debtor is granted exemptions that cover their basic needs for day-to-day living. Exemptions are ...

President Obama Focuses on Estate and Capital Gains Taxes

2011-06-12
Does the current economic climate leave your head spinning, wondering how tax and budget changes will affect you and your family? Do you ever wonder how our country got into the financial mess it is in, or why? President Obama, in the budget recently proposed to Congress, targeted two specific tax items: estate taxes and capital gains taxes. The proposed estate tax changes target mainly more affluent people with larger estates, while capital gains tax reforms mostly impact wage earners. The taxes are still up for debate, you can be sure there are changes coming, some ...

Hypnosis/local anesthesia combination during surgery helps patients, reduces hospital stays

2011-06-12
Amsterdam, The Netherlands: Using a combination of hypnosis and local anaesthesia (LA) for certain types of surgery can aid the healing process and reduce drug use and time spent in hospital, anaesthesiologists have found. The combination could also help avoid cancer recurrence and metastases, according to new research to be presented today (Sunday) at the European Anaesthesiology Congress in Amsterdam. Professor Fabienne Roelants and Dr. Christine Watremez, from the Department of Anaesthesiology at the Cliniques Universitaires St. Luc, UCL, Brussels, Belgium, studied ...

Internal bleeding higher with popular heart device than earlier model

2011-06-12
DETROIT – The incidence of internal bleeding was higher in the most commonly implanted heart device than in an earlier model, according to two studies at Henry Ford Hospital in Detroit. The HeartMate II, a left ventricular assist device (LVAD) is a continuous-flow mechanical pump connected to the patient's heart that takes over the pumping of the weakened heart's left ventricle. "Although there were more instances of bleeding in the skull and gastrointestinal track with the HeartMate II, as opposed to the earlier model, there was no increase in mortality," says lead ...

LAST 30 PRESS RELEASES:

New test helps doctors predict a dangerous side effect of cancer treatment

UC Study: Long sentences for juveniles make reentry into society more difficult

Death by feral cat: DNA shows cats to be culprits in killing of native animals

Plant Physiology is Searching for its Next Editor-in-Chief

Clothes dryers and the bottom line: Switching to air drying can save hundreds

New insights into tRNA-derived small RNAs offer hope for digestive tract disease diagnosis and treatment

Emotive marketing for sustainable consumption?

Prostate cancer is not a death knell, study shows

Unveiling the role of tumor-infiltrating immune cells in endometrial carcinoma

Traditional Chinese medicine unlocks new potential in treating diseases through ferroptosis regulation

MSU study pinpoints the impact of prenatal stress across 27 weeks of pregnancy

Biochemist’s impact on science and students honored

ELF4: A key transcription factor shaping immunity and cancer progression

Updated chronic kidney disease management guidelines recommend SGLT2 inhibitors regardless of diabetes or kidney disease type

New research explores how AI can build trust in knowledge work

Compound found in common herbs inspires potential anti-inflammatory drug for Alzheimer’s disease

Inhaled COVID vaccine begins recruitment for phase-2 human trials

What’s in a label? It’s different for boys vs. girls, new study of parents finds

Genes combined with immune response to Epstein-Barr virus increase MS risk

Proximity and prejudice: Gay discrimination in the gig economy

New paper suggests cold temperatures trigger shapeshifting proteins

Reproductive justice–driven pregnancy interventions can improve mental health

Intranasal herpes infection may produce neurobehavioral symptoms, UIC study finds

Developing treatment strategies for an understudied bladder disease

Investigating how decision-making and behavioral control develop

Rutgers researchers revive decades-old pregnancy cohort with modern scientific potential

Rising CO2 likely to speed decrease in ‘space sustainability’ 

Study: Climate change will reduce the number of satellites that can safely orbit in space

Mysterious phenomenon at center of galaxy could reveal new kind of dark matter

Unlocking the secrets of phase transitions in quantum hardware

[Press-News.org] Small Businesses Continue to File for Chapter 7 Bankruptcy Protection
With today's economy still lagging, small businesses continue to turn to Chapter 7 bankruptcy to liquidate their outstanding debts.