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- Can Bankruptcy Help If You Have Been Laid Off?
- February 9, 2010
"While East Texas unemployment is somewhat lower than the nation, the unemployment rate doubled in 2009. We’ve seen major employers, such as Pilgrim’s Pride, U.S. Steel, Trinity, and Titek close or layoff hundreds of workers. This affects the individuals and families of the laid off..." Read full post.
How Small Business Can Prepare if Bankruptcy is a Possibility
With areas surrounding the Longview-Marshall metro region continuing to report a downward spiral of sales tax revenues, we are all affected. No one is feeling the pain more than small businesses. Small businesses cannot withstand a drop in volume of sales as easily as some of the giant big box retailers who can spread loss across performing and nonperforming stores. The profit margin is just too thin.
Many small businesses are operating in the red, and are considering the possibility of closing. Pre-bankruptcy planning is more critical for small business than individual consumers. For example, if a small business is operating as a limited liability company, typically, the manager/members of the LLC have guaranteed business debt. What this means is that if the business closes, a Chapter 7 bankruptcy for the LLC will not get the owner off the hook for that personally guaranteed debt unless an individual bankruptcy is filed. The owner may need to file an individual bankruptcy and dissolve the company. Sometimes a bankruptcy for both the individual and the LLC is best.
Pre-bankruptcy planning is essential. If a business owner believes that the business would be viable if they did not have to service overwhelming debt, starting over by filing a Chapter 7 and starting a new business may work. Meet with a qualified bankruptcy attorney before making any decisions on how to proceed.