Monthly Archives: March 2020
Corporations, as well as individuals, can file for Chapter 7 bankruptcy in order to have debts discharged. For both businesses and consumers who file for Chapter 7 bankruptcy, there are certain protections associated with filing for bankruptcy, including the automatic stay, which prevents creditors from continuing to collect on debts as soon as the… Read More »
Many businesses in the Tampa Bay area, like restaurants and retail establishments, realize that they are having difficulty paying their bills and managing the upkeep of the business. In some cases, a business’s financial problems are seasonal. For example, a restaurant might struggle during the spring and summer months when fewer tourists and part-time… Read More »
When a restaurant, hotel or bar owner in the Tampa Bay area is struggling to stay in business due to a downturn, that restaurant or bar owner likely will be looking for short-term financing options, or a bridge loan to help them stay in business until they are able to make sufficient earnings again… Read More »
Debtor-in-Possession Bank Accounts and Rules: What Happens When You File a Chapter 11 for a Small Business?
What happens when a small business in the Tampa Bay area files for Chapter 11 bankruptcy? Let’s look in particular at the requirement for the business owner to open debtor-in-possession bank account. What rules does the debtor have to follow? In order to understand the answers to these questions, it is important to learn… Read More »
Insolvent Businesses and Bankruptcy Auctions When a business becomes insolvent, it’s unlikely that a bankruptcy court will approve a Chapter 11 reorganization. To be sure, it’s pretty difficult for such a business to prove that it might be able to repay any debts. And that’s exactly what happened recently in Plantation, Florida. According to… Read More »
Many bars and restaurants that open in Tampa end up having significant financial difficulties, and many end up realizing that they have more debts than they can adequately manage. In some cases, restaurants and bars may be able to reorganize their debts through Chapter 11 bankruptcy, which also allows the business to keep its… Read More »