Business Bankruptcy Law | Small Business Bankruptcy Laws

I heard Penguin windows went out of business, but even after they filed chapter 11, we still had their canvassers dropping by. This past week, we thought we would give Renewal by Anderson a try. The canvasser was nice, telling me how other companies can be supper pushy and Renewal by Anderson wasn’t at all like that.

The next morning, the sales person shows up at our door. Its the same Penguin sales rep. I asked what was going on. He said Penguin went out of business. He wouldn’t answer anything else. He said his new windows were even better then the old ones…

Did the company just change their name?

chapter 11 section 1

1. (TCO 1) Approximately what percentage of businesses have a payroll with fewer than 500 people?
(Points: 5)
10 percent
25 percent
75 percent
99 percent

2. (TCO 1) The impact downsizing has on small business is which of the following?
(Points: 5)
No labor force to work in small businesses
Opportunity to perform the work large businesses no longer perform
An availability of workers with no skills
Lack of financial backing for small businesses

3. (TCO 1) Which of the following are the inherent factors that work in favor of small businesses?
(Points: 5)
Ability to remain flexible and innovative
Management expertise
Emphasis on variety
Emphasis on quantity

4. (TCO 1) Which of the following is the key element needed to bring the entrepreneurial idea to reality during the implementation stage?
(Points: 5)
Capital/money
Commitment
Management expertise
A college education

5. (TCO 1) Which of the following is the most common form of business ownership?
(Points: 5)
Sole proprietorships
Partnerships
Corporations
Joint ventures

6. (TCO 4) Which of the following may an employer do under the Americans with Disabilities Act?
(Points: 5)
Question applicants about the severity, nature, or origin of a known disability
Refuse employment due to the employee needing special accommodation
Require drug tests at any time in the employment process
Require medical or physical exams prior to a conditional offer of employment

7. (TCO 4) Which of the following methods of bankruptcy would be best for a business that has no hope of getting out of its financial indebtedness?
(Points: 5)
Chapter 7
Chapter 12
Chapter 13
Chapter 11

8. (TCO 4) A sales forecast based on estimation of daily sales that are then projected for weeks, months, and years with seasonal adjustments is using what approach?
(Points: 5)
Build-up
Guesstimate
Break-down
Pro forma

9. (TCO 4) Product refers to:
(Points: 5)
Tangible goods only
Tangible services only
Tangible goods, intangible services, or a combination of both
Intangible services only

10. (TCO 4) A small business owner should begin the site selection process by asking which of the following questions?
(Points: 5)
What region would be best?
What state within the region would be best?
What city within that region would be best?
What specific site within that city will work for the business?

11. (TCO 4) A type of retail layout with a predominant aisle running through the store that quickly leads customers to their desired departments is known as what?
(Points: 5)
Free-flow layout
Grid layout
Loop layout
Process layout

12. (TCO 4) Which of the following is one of the most flexible components of the marketing mix?
(Points: 5)
Product
Promotion
Place
Price

13. (TCO 4) The point at which total cost equals total revenue and the business is neither making or losing money is known as the _______.
(Points: 5)
Profit area
Loss area
Breakeven point
Profit point

14. (TCO 2) Through the franchise agreement, the ________ gains the benefit of the parent company’s expertise, experience, management systems, marketing, and financial help.
(Points: 5)
Franchisor
Franchisee
Leaser
Lessee

15. (TCO 2) The financial document that is used by startup businesses to show where capital comes from and for what it will be used is called:
(Points: 5)
Cash-flow statement
Projected earnings statement
Sources and uses of funds
Income statement

16. (TCO 2) Which of the following is not included in the marketing plan section of the business plan?
(Points: 5)
How sales forecasts will be reached
Marketing objectives
Identification of potential markets
Cash-flow statements

17. (TCO 3) Industry averages for expense ratios comparing expenses to ________ exist for every size and type of business.
(Points: 5)
Profits
Assets
Liabilities
Sales

18. (TCO 3) In the chapter opener, what was the limitation that kept Philip Rosedale from creating Second Life when he first had the idea for it?
(Points: 5)
He didn’t have enough money.
He didn’t know how to promote it.
Computers were not powerful enough at the time.
Some technical gadget like a flux capacitor needed to be invented first.

I filed personal chapter 7 bankruptcy in 2007.
I now own a business, a daycare, that is failing due to so many parents being out of work.
Is Chapter 11 the proper bankruptcy to file for this type of debt, and if so, am I eligible?

I loaned 30K to a company and now the company went under. I can deduct 3K yearly on my taxes until the 30K is down to zero. The owner said that he would file for chapter 11 or 13 so that his investors can file taxes. However, he left the remainder inventory behind, stop paying rent and has left the states with no contact info. The company is no longer in business. If he don’t file for chapter 11, how do I prove that it went under and file for taxes.
Thanks

I joined the family business 3 years ago, after my MBA. I found a business with lots of debt, close to bankruptcy. We have been in a Chapter 11 type procedure since my arrival.

A financial offer to all the creditors must be formulated soon, or the company will go into liquidation. In both situations, I think I want to leave the company.

If it goes into liquidation, it is obvious, there won’t be any company left. If there is an offer, it will be made by a financial "partner" with who there are numerous conflicts already, and I don’t see any future with them for me.

I am wondering how I can "resell" my profile. Indeed, while I am on the paper a CFO/COO with MBA at a young age, there are 2 scenarios:
- If I leave the company in bad shape: I did not manage to turn around the business, and it does not look like a succesful experience
- If I leave a saved company: how to justify such a decision (in reality motivated by relational more than professional factors)

Thanks in adv.

they are now closing a lot of stores nationwide.. and they have filed for chapter 11. will they be ok now most likely? or is it probably only a matter of time till they compleetly go out of business? opinions?

Only poor person files bankruptcy. And only large banks and credit card companies (which are rich) oppose bankruptcy. Whether a person is financially responsible or financially irresponsible, the government has NO business telling citizens how to spend. This is free country. We don’t want government interference in our lives. Republicans don’t preach their own mantra. This bankruptcy crackdown interferes into the lives of the lowest man of the ladder. Furthermore these bankruptcy laws don’t prevent people from filing bankruptcy. The bankruptcy lawyer industry is equally very large and they have all figured out numerous ways to get around tighter 2005 laws, which in effect defeated Bush efforts to make it harder. This is evident by the fact that 1.5 million filed chapter 7 last year, compared to less than a million prior to 2005 laws.
billysab: reported for violation and you will get email violation notice.
Also how can the government teach the citizens to spend responsibly when the government itself is a reckless spender? this puts GOP as hypocrites
Will: why should the government interfere and tell us how to live our lives? I thought that’s GOP slogan?
beltway 8: Lehmann brother was chapter 11. I meant to say only a poor files chapter 7.
if you’re filing bankruptcy you are poor. why else would you file it? You don’t have money to pay the bill — that technically makes you poor. FAIL
stratam: see above my comment for beltway 8. Lehmann brother was chapter 11. I meant to say only a poor files chapter 7. The bankruptcy laws cracked down on chapter 7, not chapter 11
did lehmann file chapter 7? who files chapter 7? ordinary people like me and you! that’s what the law targeted. Poor people file chapter 7.
TOP DOG: yes, what happened to personal responsibility? Government itself being financially reckless is giving financial advise to the common citizen?
beltway and strat: FAIL. You never followed up to my additional details. Post and run

I’m referring to NAFTA. Everyone seems to think that free trade is a good idea, but I’ve been doing some research and found quite the opposite. I also find it strange how we, the people, werent even informed this would be happening, and had no say in it whatsoever.

I found this article:

"FOUR REASONS WHY NAFTA IS A BAD DEAL FOR CANADA:

NAFTA undermines democracy.

Foreign corporations use Chapter 11 to challenge environmental laws, municipal land-use controls, water protection measures, the activities of Canada Post, and even the decisions of judges and juries. While no Canadian citizen or corporation could bring forward these challenges, NAFTA grants corporations of member countries the right to challenge any federal rule or law that they perceive as a barrier to their ability to make a profit. The result is millions of tax dollars being spent to either fight or settle with these corporations.

NAFTA threatens health care and other public services.

The exemption for health care under NAFTA, which has largely kept U.S. for-profit health corporations out of Canada, applies only to a fully publicly funded system. Once privatized, the system must give “national treatment” rights to American private hospital chains. The NAFTA exemption only applies to medicare as it stood in 1989, and doesn’t provide protection for a possible expansion of medicare into new areas like homecare and pharmacare.

NAFTA strips Canada of control over our energy resources.

Canada now produces about 40 per cent more oil than it consumes, but has to rely heavily on imported oil from offshore. Thanks to NAFTA, Canada now exports 70 percent of the oil and 61 per cent of the natural gas we produce each year to the United States. NAFTA prevents us from selling our energy resources to Canadians at rates lower than we sell them in the U.S. And because of NAFTA’s proportional sharing clause, we can’t ever cut back on the amount of energy we produce and sell to the United States, even in times when our country runs short.

NAFTA could put our water up for sale.

Canadian water is defined as a “service” and an “investment” under NAFTA. The agreement’s so-called water exemption is inadequate. After British Columbia banned bulk exports of lake and river water, the California-based Sun Belt Corporation launched a Chapter 11 challenge, seeking billion in damages. The case is still outstanding, and has profound implications for the future of Canada’s water.

Current trade policies serve as a platform for deeper integration with the U.S. Our business and political elites are pushing for deeper ties with the U.S., and would see Canada privatize health care, join common security projects, give up sovereignty over our natural resources and harmonize our food and health policies with lower U.S. standards.

NAFTA is a bad deal for Canada, working families, our environment and our sovereignty. We want a trade policy that protects our democracy, social services, natural resources and way of life."

There Telling everyone that after the chapter 11 there going to be doing a lot better and things will turn around.

3 months later they now have closed another 182 more stores nation wide. I know red box and netflix are a huge game changer in the movie renting business. It is impossible to match dollar rentals and still pay employees plus overhead cost. Dollar rentals are not possible at a blockbuster store. BUT! imagine a world without a movie store. You will be unable to browse movies or pay cash for your rentals. What would you like to see change? (beside the obvious…"prices")

Instead of the 0 million worth of tax breaks that company financial
advisors estimated would be available to the reorganized company, the
post-bankruptcy Washington Mutual could take advantage of nearly .5 billion
in tax breaks, shareholder attorneys say.

That’s a big difference, and one worth a new objection to confirmation of
Washington Mutual’s Chapter 11 plan, shareholders contend.

Washington Mutual, through a spokesman, declined comment Tuesday on the bid
by shareholders to call the attention of the judge to what they say is a defect
that makes the company’s Chapter 11 plan unconfirmable.

The plan pays off billions of dollars of debts, with interest, but leaves
nothing for shareholders. Their attorneys say that’s improper for a lot of
reasons, including what they claim is an overpayment to noteholders that struck
a deal with the company. In addition to getting paid in full, four hedge funds
will control the post-bankruptcy Washington Mutual, an entity that is supposed
to manage a portfolio of insurance assets.

In the hands of Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management, however, the reorganized Washington
Mutual will have access to the capital and financial expertise to build a book
of business designed to make the most of billions of dollars worth of in tax
writeoffs, shareholders contend.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=tm&bn=86316&tid=647918&mid=647918&tof=-1&rt=1&frt=2&off=1

It seems like Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management control the whole wamu company and they seem to want all the assets themselves and leave the shareholders with nothing.

What do you think?

just one of those jokes you cant laugh at because you dont understand. If anybody can tell me what it means by chapter 11, best answer comes and knocks on your front door…

There was a guy who owned his own business. He sold plastics to many different companies. One day one of his warehouses burnt to the ground. This led to many orders being canceled and a loss of customers. The insurance company was not going to cover the damage. This guy was in real trouble. He could lose everything.

Well, the guy decided to see his minister. He said to the minister, "I need help! My warehouse burnt to the ground, my product is all gone, my customers are leaving, and I am losing everything!"

The minister told him, "You can find all the answers to your problems in the Bible."

The guy asked, "Where should I start?"

The minister answered, "If you do not know where to look, just open the book and place your finger on the page, and start right there. Sooner or later you will find your answers."

Well, A few months later the minister ran into the individual. It was obvious the individual had become very successful. He had a new car, new clothes, several rings and chains.

The guy walks over to the minister and says, "Thank you. The answers I found turned my life around!"

The minister was curious and said, "In what passage did you find your answers?"

The man says, "I did just what you said. I opened the Bible to a spot, looked down, and found my answer staring me right in the face – "Chapter 11."

holders?

Instead of the 0 million worth of tax breaks that company financial
advisors estimated would be available to the reorganized company, the
post-bankruptcy Washington Mutual could take advantage of nearly .5 billion
in tax breaks, shareholder attorneys say.

That’s a big difference, and one worth a new objection to confirmation of
Washington Mutual’s Chapter 11 plan, shareholders contend.

Washington Mutual, through a spokesman, declined comment Tuesday on the bid
by shareholders to call the attention of the judge to what they say is a defect
that makes the company’s Chapter 11 plan unconfirmable.

The plan pays off billions of dollars of debts, with interest, but leaves
nothing for shareholders. Their attorneys say that’s improper for a lot of
reasons, including what they claim is an overpayment to noteholders that struck
a deal with the company. In addition to getting paid in full, four hedge funds
will control the post-bankruptcy Washington Mutual, an entity that is supposed
to manage a portfolio of insurance assets.

In the hands of Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management, however, the reorganized Washington
Mutual will have access to the capital and financial expertise to build a book
of business designed to make the most of billions of dollars worth of in tax
writeoffs, shareholders contend.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=tm&bn=86316&tid=647918&mid=647918&tof=-1&rt=1&frt=2&off=1

It seems like Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management control the whole wamu company and they seem to want all the assets themselves and leave the shareholders with nothing.

What do you think?

Instead of the 0 million worth of tax breaks that company financial
advisors estimated would be available to the reorganized company, the
post-bankruptcy Washington Mutual could take advantage of nearly .5 billion
in tax breaks, shareholder attorneys say.

That’s a big difference, and one worth a new objection to confirmation of
Washington Mutual’s Chapter 11 plan, shareholders contend.

Washington Mutual, through a spokesman, declined comment Tuesday on the bid
by shareholders to call the attention of the judge to what they say is a defect
that makes the company’s Chapter 11 plan unconfirmable.

The plan pays off billions of dollars of debts, with interest, but leaves
nothing for shareholders. Their attorneys say that’s improper for a lot of
reasons, including what they claim is an overpayment to noteholders that struck
a deal with the company. In addition to getting paid in full, four hedge funds
will control the post-bankruptcy Washington Mutual, an entity that is supposed
to manage a portfolio of insurance assets.

In the hands of Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management, however, the reorganized Washington
Mutual will have access to the capital and financial expertise to build a book
of business designed to make the most of billions of dollars worth of in tax
writeoffs, shareholders contend.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=tm&bn=86316&tid=647918&mid=647918&tof=-1&rt=1&frt=2&off=1

It seems like Appaloosa Management, Centerbridge Partners, Owl Creek Asset
Management and Aurelius Capital Management control the whole wamu company and they seem to want all the assets themselves and leave the shareholders with nothing.

What do you think?

I was watching Circuit City’s stock prices especially with them being so low and then when they filed Chapter 11, I couldn’t find it anymore on Yahoo Finance or any other business site. Are they suspending trade because of the filing or because the price has been less than /share for a while or some other reason?

I believe regressive liberals deserve coal for christmas, yet obama is going to tax WV coal into chapter 11. I will have more money saved up just this year, then most of you progressive/social can save in ten years!!!

I HOPE government state workers are laid off on a massive scale, as like what happened to the slugs from Cuba and the U.K. What will you libs give your lib children for Christmas when Obama or the Republican CEO puts you in a soup line?

nouriel roubini has propsed a VAT and bond purchases, yet we will most likely perform more QE, cutting Obama pork and entitlement programs!

People that vote for DemocRats during the mid terms deserve to fail until they change to the American party!

I will donate money to tea partt members, yet I will not give a single penny away to jobless Libs! Serves you guys right for not supporting pro America/business!!
Jon Stewart rally= a bunch of jobless libs that will trash the event.

Sophie, you are cute.

Tribune Co. filed its latest plan to emerge from Chapter 11 protection late Friday, hoping it had sufficient creditor backing to win a Delaware bankruptcy court’s confirmation and end its contentious two-year bankruptcy.

But the Chicago-based media firm is by no means assured of success even though it filed the reorganization plan jointly with the Official Committee of Unsecured Creditors, JPMorgan Chase and hedge funds Oaktree Capital Management and Angelo, Gordon & Co.

By Friday, other creditors seeking a richer payout from the bankruptcy estate are expected to present competing plans for concluding the restructuring, which has been rocked by shifting alliances and pitched legal battles over how much creditors should receive and who should be held responsible for paying them.Tribune presents second plan to exit Chapter 11

http://www.chicagotribune.com/business/feed/ct-biz-1024-tribune-reorg-20101023,0,7927509.story

Are they "too big to fail" or will Nancy Pelosi and Obama bail them out? Speaks volumes on how people are sick and tired of the propaganda from the liberal left looney tunes.

Chapter 11

The purposes, tools, and limitations of fiscal policy.
The role of built-in stabilizers in moderating business cycles.
How the standardized budget reveals the status of U.S. fiscal policy.
About the size, composition, and consequences of the U.S. public debt.
Why there is a long-run fiscal imbalance in the Social Security system.

I joined the family business 3 years ago, after my MBA. I found a business with lots of debt, close to bankruptcy. We have been in a Chapter 11 type procedure since my arrival.

A financial offer to all the creditors must be formulated soon, or the company will go into liquidation. In both situations, I think I want to leave the company.

If it goes into liquidation, it is obvious, there won’t be any company left. If there is an offer, it will be made by a financial "partner" with who there are numerous conflicts already, and I don’t see any future with them for me.

I am wondering how I can "resell" my profile. Indeed, while I am on the paper a CFO/COO with MBA at a young age, there are 2 scenarios:
- If I leave the company in bad shape: I did not manage to turn around the business, and it does not look like a succesful experience
- If I leave a saved company: how to justify such a decision (in reality motivated by relational more than professional factors)

Thanks in adv.

Liberals, will GM fail again?
What did Gov Motors changed for their business model?
How will they do with their toxic legacy cost?

If gm issues another ipo, well I will short sell the stock and close my position when they file for chapter 11 again!

In a real capitalist system, gm’s competition would had ate their market share, along with GM’s vendors,suppliers and other key players!

America is broke and we can not keep on bailing out the dead weight of society!
They produced a profit because they sold part of their car division, which was an one tine gain, otherwise, the operational side is still toxic.