Business Bankruptcy Law | Small Business Bankruptcy Laws

There is a utility trailer and some lawn equipment that is needed to keep the business going, would that be liquidated in chapter 7 or is work equipment safe? Chapter 13 plan is no longer feasible and there is consideration to convert to 7 but the work equipment must be preserved. Please let me know specific to New York State, because NY is always "different".

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.

My debtor filed bankruptcy under chapter 13.He is running business and declared assetts worth 75,000.Debts 225,000.
Surplus for distribution $ 350 per month.Is it a joke?Can this be approved?

I AM IN A CHAPTER 13 AND I HAVE SOME ONE WHO WILL BUY MYBUSINESS.

This year we went under on our home based business! We filed chapter 13 on September 15 2010! We filed on our credit cards and other non secured debt, but left our 1st and 2nd mortgages off! What I mean by off is that we would be paying directly to the lender and not through the trustee off the court! I thought that we were current with our first mortgage; I knew that we had gotten behind on the 2nd but caught up before filing chapter 13! To make a long story short I didn’t find out until I went online and checked our past bank statements that we were behind on the first mortgage! We are still current on the 2nd but the first is looking at foreclosure! We did receive mortgage modification forms sent to us by the mortgage company the other day! We didn’t ask for them they just them to us! My question is if the mortgage company decides to foreclose will this be grounds to have our chapter 13 dismissed?
@ Real, I have ask my lawyer and he didn’t think that this could be an issue! But I would just like some other knowledgeable people’s opinion on this!

2. True are false debtors are protected from losing the value of their property as a result of the automatic stay.

3. True are false the same principles cover the filing of a chapter petition and a chapter 11 proceeding.

4. A bankruptcy may be commenced by involuntary petition under chapter 13. True are false

5. Generally in a bankruptcy proceeding and creditor claim is allowed. True are false

6. When a business debtor files for chapter 11 protection the debtor is not allowed to continue in business. True are false

7. No small business can avoid creditor’s committees under chapter 11. True are false

8. Bankruptcy proceedings are held in federal bankruptcy courts. True are false

9. A discharge obtained by fraud can be revoked with one year. True are false

I had a bad business deal gone bad; lost potential contracts but that was 3 yrs ago and its not settled yet; since then I have reestablihed myself and my current is just fine. Can I get a life policy while I’m waiting for my chapter 13 to get settled?

i am looking for the case video chapter 13 on 8th edition Understanding Business by McHugh, Nickels

I have about 000 in unsecured credit card debt spread out over 9 credit cards (BofA, Citi, Mrk, WFG, Chase, Dell, Macys, Target). Why this much? I was dumb and stupid and have no sense of money management but was also married and made some bad business investments. I am now divorced. Majority are now at penalty interest rate!!!

OK so I have everything on a payment plan (except WFG that is soon to charge off) but here lies the issue. I have zero savings and my FICO score has already dropped to 475. The home bills (mortgage, utilities & vehicle) takes more than half my monthly income. My biggest concern and fear is that I have my first child coming this December and don’t want her to suffer due to Dad’s mistakes. My girlfriend has her own financial issue with the IRS for almost same amount as my debt, so I do not get help from her and I can’t help her own issues. But I need to start paying the hospital bills from the new baby, and the mom needs come break too.

Please advice:
1) Should I cut and run for the next 3-5 years and settle these debts later? Build a savings right now for the baby and her mom too. I am pretty confident I can take care of it later down the line. Maybe save up then start approaching them one by one (in about 12-15 months) and offer lump settlements.
2) Should I file for chapter 13 and get a court’s help on repayment; thereby reducing some of the outrageous fees and interest?
3) Should I go for those special payment plans with companies you see on TV? I have seen more negative comments than positive regarding this option

Any advice is appreciated and feel free to criticize my past actions. I can only learn going forward. Before I didn’t care but now I have this lady and kid, and they both take priority so I feel I should change the situation fast.
FYI, I am no longer using them for new purchases. Its just I ignored them for a while when I was going through the divorce proceedings and changing jobs which resulted in the high penalties I am facing. I have tried in the last 90 days to put everything on a fixed budget through payment plans but other issues and medical bills keep coming up. So far the medical bills have not been paid and are at 00 total; and the baby is still to arrive in December.
To sophieb & Timothy P,

thanks for the advice, I am reviewing the best option going forward.

Sopheid, a little more details: It is my first child and we are not married yet due to the IRS issue. Yes it was poor planning but I am happy I am having a baby finally; after trying for more than 5 years and divorcing for reasons connected to that.

I will explore the option you mentioned. Current salary is K which I just started last 2 months, about k monthly after taxes. Like I mentioned Mortgage (GF house!) and utilities and transportation is consuming about 00. My GF is helping as much as she can, but she makes less than half my income and has 1 kid already.

My issue is that, regardless of all being on a payment plan except for 1, the debts are not reducing. I feel strongly I need to start saving for medical bills and baby’s arrival and do not have the room currently to do so. This is why I am exploring alternative options.

Owen drops out of school before he completes his college education and starts his own business. Five years later, Owen files for bankruptcy under Chapter 13. Owen will obtain a discharge of all debts provided for by the Chapter 13 plan if the value of the property distributed under the plan is greater than what would have been available in a liquidation and

a. if he fails to make all payments due to events beyond his control.
b.if he stays in business for at least five years.
c. if he takes out a student loan and returns to school.
d. under no circumstances.

We may have to file bankruptcy b/c my hubby’s building business is not doing well these days…if we file personal bankruptcy will they look at and take all assets to pay off debt under chapter 13? My problem is that my parents put their paid for house in my name and my 2 brothers names about 5 years ago because they are in their 70’s…they have also put money in my name although we still give them the interest checks on it. They did this to avoid a potential nursing home someday getting their assets…..anyway, if we file bankruptcy will they go after these assets? If so, what will they do? Can I take these assets out of my name and then file bankruptcy? If so, will they still be able to tell they were recently in my name? Do I need to wait a certain period after removing these assets from my name before filing? We would really like to keep our house and cars but the credit card bills are really hurting us.

We fell on some devistating hard times due to illness, medical bills, ect ect ect. After our only vehicle got repossessed we sifted through hours and hours of online and phonebook ads for bad credit loans to attempt to borrow some money so we can get vehicle back. Seems either they’re all payday loans of small amounts that aren’t big enough to do any good with insane interests or just total scams. Its been exhausting and very depressing. So now we realize that the only answer is to file for chapter 13.

Just as overwhelming is trying to find a good BK lawyer. How do you sift through all the generic ads to find a good one? We don’t have a lot of time for testimonials as we’ll have 3 business days to find one and get working to save what little we have left.

This (both of us) is my 3rd marriage ( & we are EXTREMELY happy with each other – on a PERSONAL level!!) but in 2004 HE just HAD to have this house. It is a very solid house (built in 1978 -no pressed board here!) on 6 acres, he with unbelievable business potential. It has been valued at over 650,000.00 simply on location. We have a woman who owns apts. ‘next door’ (kind of across an acre of land her 30-something son ‘plays’ on) who has offered 0,000.00 for it. Sorry! We owe about 5.000.00 on it. So, we HAVE to get AT LEAST 0,000.00 to maybe 0.000.00 to even make any headway on it. Plus (and this is the bad part!): my daughter OWNS the property and had to declare Chapter 13 last October, 2007! And then the interest level increased & now we have an over ,.000.00 a month mortgage pmt on this place!!!
I have a very prosperous daycare business in one of the rooms – but every penny I make goes to bills/mortgages. And to pay my spouse’s bills over the past winter – because he wouldn’t get an alternative job (other than what he WANTS to do??!?) to pay his OWN bills!!!

Now I am needing some input from some one objective (other than kicking hubs to the curb – there is some significant histroy there that I won’t divulge at this time) as to whether or not I should sell to the "apt. lady" who wants it semi-desperately, or to just wait for the other shoe to fall & get foreclosed upon.
I’m sorry – I had to read what I’ve already said to make sure it was OK!

Anyway, daughter is paying the Trustee & I have not been able to get the mortgage $ together for the past 4 months because of shelling out to hubs.

The main question here is: should I sell out to the apt lady for WHAT PRICE & TRY to lease/purchase another house I’ve found (very perfect for my type of daycare business where we could also live), or just wait til the other shoe from the mortgage co. drops?
This other house is only ,600.00 a month & it makes me dizzy thinking about the "disposable income" we would have then! Oh, and I WILL NOT/CANNOT leave my hubs – as I said, there is history there I prefer to keep private. Thanks, though!
Thanks. Jeff. We have tried that & nothing has come of it YET. The timing seems all wrong to make it work – hubs is one of those who can’t let go of something once he thinks he has it – I am the total opposite (as far as only material things are concerned!!) .

What worries me is that this house I found will be sold before I move on it. It is actually a "Flip This House" house! You know – the show that re-does houses to sell? It’s in a high traffic area, horseshoe drive, perfect layout for a daycare (FIVE bedrooms!) & is. of course, in pristine condition! I am in H*ll about this!!!

I own a condo in my name only where I lived before we got married and it is currently rented but it is always a couple of hundred dollars less than the mortgage and the association dues. I doubt I could sell it in this economy. I came into this marriage with over ,000 in unsecured debt. My only other asset is approximately ,000 in a 401k. My husband pays for the house, our household expenses, my insurances and most everything. The money that passes through our household is approximately 0,000 (my portion being ,000) but our expenses are right up there. He has a business, mortgage, a couple of employees, but with the declining economy and less business being generated, we are basically working to support the debt.

I live in Georgia and if I could file for bankruptcy, without my husband AND without making him in any way liable I would like to do that. Here’s a couple of deal-breakers on the whole bankruptcy thing for me:

* I do not want my work to know — not critical to the job but just embarrassing. No payroll deduction.

* Is a legal notice in the newspaper a must for Chapter 13?

* Would my debt be reduced or canceled altogether.

* I am not behind in my payments — yet —- but it sure is squeaky tight here.

What do you all recommend for someone in my position.

Thanks in advance for your help.
For those that wondered how I got into debt: former marriage where my ex left me with ,000 in debt, other medical bills and having to do it all by myself. Have great credit but I am suffering anymore. You have to walk a mile in someone elses shoes before you judge.

I loaned a "friend" (of 14 years) 00 appx 3 years ago. She was going through a difficult time. She was self employed as a staffer for the car business and after the economy bottomed out she was on the verge of losing her home to foreclosure. She also was about to have her phone shut off and was worried she wouldn’t be able to get back on her feet if she couldn’t conduct her business. Her boyfriend also self employed. He bought things from estate sales and resold them on EBay. Their mortgage was behind by 00, her phone bill was almost 0 and the EBay acct was suspended owing 8.00. At the time my family was doing okay as I had just received some money from an insurance settlement and I had it to loan. I had western unioned her 00 in cash, put her phone bill on my credit card and sent them money through PayPal to pay off the EBay acct.

It was always understood it was a loan but because they were going through such a rough time, I didn’t want to pressure her with a repayment date and just said, "pay me back as soon as you can or if I ever need it back". She has made mention over the last 3 years that she hadn’t forgotten that she will pay me back soon and had once made a payment of 0 dropping her debt to me down to 50.

6 months ago our financial situation had changed. My husbands hours had started to be cut back. At first we juggled and managed but soon after it got worse and we also got hit with a few unexpected bills. I had approached my "friend" and asked if she could pay me back the money she owed me. If she couldn’t handle the whole amount, I would accept payment installments but we really needed that money back. She said she would see what she could do and then shortly after picked a fight with me over something trivial. I saw that ploy for what it was and insisted that she pay me back all of it or else…

She had just filed for chapter 13 BK and stated that she couldn’t be behind on any debt or have a new debt added or it would unwind the BK. I didn’t want to cause any trouble for her but I needed my money back and told her as much. She had promised she would have the money to me by the end of May. The deadline came and went and not a word from her. My husband had finally gotten his hours back but not soon enough and because we had no other money coming in, all we could do was hope she would be honorable and pay, so we held off our creditors as long as we could. As a result our truck, that we had paid diligently for over 3.5 yrs had gotten repossessed. We are going to be able to get it back but we’re going to have to let go of a few other bills to do so and its going to causes us much trouble. The money she owes me would put us right back on track.

I’m starting to see that unless I get "official" with her I’m not going to see my money back any time soon. Recently, on one of the rare occasions when we had a cordial conversation, she had let it slip that she’s had steady employment for the last year and through some sort of loophole, she’s been able to stay in her condo for the last 36 months and her car (a benz) for the last 18 months without having to pay anything and that her boyfriend just bought a new car. Now I’m furious! While my truck sits in a lot as we try to come up with 00 by Friday to get our truck back and try to figure out how we’re going to feed the family and keep the lights on, they’re doing just fine! In what universe does that seem fair? So now I’m ready to role up my sleeves and get serious. You just don’t do that to people, especially after a decade and a half of "friendship". Its all so pathetic and cliche!

Problem is, I live in Colorado and she in California. I looked into it and I can’t sue her in small claims from here. I’d either have to hire a lawyer to handle the suit or file myself but I’d have to do it from there. Obviously can’t afford that right now. I’ve looked into hiring a collection agency but the few that I found that will take on a personal, non-business loan want between 30-50% upfront in fees (and some after). I’ve kept all the proof (WU receipt, credit card bill, paypal transaction showing all the money I sent her, along with the emails where she acknowledges her debt to me and that she would be paying me back what she owed me, in full, by May, 2010).

I want to know if I can hire a lawyer (preferably in SoCal) to scare her into paying me back by sending her a letter on my behalf stating my intent to pursue all my legal options to get the money owed back within 30 days, without having to pay a retainer and if so how much would something like that cost?

And if anyone can think of anything else that I can do to get the money owed to me back, that would be greatly appreciated. Maybe a SoCal atty that would be willing to handle this probono?

Thank
Thank you all in advance for any and all advice. Sorry it was so long but I wanted to add the full history in case someone could think of anything else I could do. Maybe someone knows of a SoCal atty or firm that would be willing to take this on probono?

I’m a RE agent and the only one at the family who works however I have not been making any money for 6 months! All my 4 children and my wife are students. We have been living a good life with a family of six since. We own three properties including my home. My efforts to sell any of my properties including home has not been successful. We have been using our credit cards and have max them all. As a result of this situation I am not able to refinance or obtain any other loans.
As a business person, I have started to set up another business which I can replace with my current career. It may take at lease six months to make money.
I have other valuable items that may bring me money if I sell them but those also take time.
The situation has kind of depressed me. What should I do in this situation? I spoke to a lawyer about filling chapter 13, but it looks like most lawyers like chapter 7 better. I know I can get back to my feet if I would have enough time to reestablish. please help!

My stupid Attorney screwed up my paper work for a Chapter 13. (Needless to say I won’t be using her ever again!)…So anyways, my C13 was dismissed on 4/30/09. I filed another Chapter 13 with a new Attorney 5/14/09, however, I was told it takes about 3 to 5 business days to get a case number. Meanwhile, I was contacted by a repoman that a WRIT (or however it’s spelled) had been filed on my car and the bank wants it back. I want to know if I can hide the car out until I get a case number?, Or will the Sheriff get involved like tomorrow, or just how long it will be before one does? Thanks!!

i need help with these questions

chapter 13

which of the dwarves is the only one who really feels bilbo has done plenty of dangeroyus business and is ready to help?

what is the "first payment" of bilbos reward given to him by thorin?

what is the "m looking glass" that bilbo want?

what is cram?

what is one hint that fili and kili are perhaps not as greedy as the rest of the dwarves?

I never saw or spoke to a lawyer, they filed chapter 13 bk for me which failed..Dismissed For Incomplete Filing, no pay plan submitted.They denied it saying it was a COURT ERROR but they "can’t argue with the court" so I have to start over–Refile and pay filing fee again out of my pocket!Meanwhile, the sale date is coming up
They prepare docs again, just barely in time, and they have ME file it myself and pay the fee directly to the court. I still hadn’t seen a lawyer but I was told I will "when it is time". They said I don’t even need to go to court, so I didn’t, and neither did a lawyer either! Case Dismissed For Failure To Appear and I can’t refile for 180 days. Still no lawyer and they tell me they are moving, changing phone#, FAX#, and the business Name, too.
Now my property is unprotected, I don’t know what to do and the bank takes my property. Is there anything I can do? Can I hold someone responsible?

Also I have not received anything in writing yet, and I have one rental unit and the renters have not received anything in writing either, Do I still collect the rent until I get something in writing from the bank?

Mortgage Dilemma

We are in Chapter 13, really bad credit but both husband and wife make 6 digits each.
Just a little background how we got the bad credit, we use to have a business that went sour and now we just decided to work and makes 6 digits each of us. Now here our dilemma.
We have a two mortgage the first interest is 6.25% and the other one is 11.25%.
We live in the house that is worth 0K here in Maryland. We are paying for the first mortgage ,100 and ,300 for the second mortgage and ,200 for the Chapter 13 so total of ,600/month for mortgage. Since we are in Chapter 13, it makes it impossible to refinance. We have tried www.naca.com but according to them that we cannot be in Chapter 13. We also have tried other refinance company but unfortunately our house when we purchase it is was 9K and 3 years ago since the market is down the value of the house is the same there is no equity and therefore we cannot refinance. So just to summarize why we cannot refi