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Los Angeles California Bankruptcy Blog

Cancer risk led to Chapter 11

Whether you work in the healthcare field, have a personal interest in Johnson & Johnson or know someone involved in a class-action lawsuit related to the company known for providing safe baby products, you may be interested in further developments related to allegations of Johnson & Johnson’s baby powder causing cancer. Facing more than 14,000 claims, Johnson & Johnson’s talc supplier, Imerys Talc America Inc., has filed Chapter 11 bankruptcy.

When the time comes to let a small business end

When a business is facing overwhelming debt and other major financial issues, a big decision comes before the owner. This is the decision of whether to try to keep the company up and running or bring the business to an end.

No entrepreneur wants to see a business he or she invested time and effort into fail. However, sometimes, an owner letting his or her company come to an end is what would be best for his or her long-term interests.

Refinancing can also happen with business loans

There are many things that can lead to companies taking on significant debt. Sometimes, small businesses run into struggles keeping current with the payments on the loans they have taken out. When this occurs, there are a range of strategies small business owners could pursue to try to lower their payments and stabilize their debt situation.

One of these is refinancing. While this is something that many associate with mortgages, it can be done many different kinds of debt, including small business loans.

Some businesses look to peer-to-peer lending for financing

There are a variety of reasons that a traditional bank loan might not be an available or attractive option for a given small business owner. Given this, it is important to remember that such loans are not the only financing avenue small companies can pursue. Among the recent trends for small businesses is a growth in alternative financing options.

One such option that has been gaining popularity is peer-to-peer lending. Broadly speaking, this financing route involves getting a loan from an individual or business without a bank’s involvement. Such loans vary in size, but tend to be smaller. The loans are often arranged through online platforms in which companies can put up listings to try to attract lenders.

Don’t forget about business credit score

In today’s world, it is getting increasingly common for people to pay attention to their personal credit score and how to protect and improve it. It is important, however, for small business owners to remember that this is not the only credit score that can have major implications for their future.

It is critical for small business owners to not ignore the business credit scores of their companies. Companies are subject to a different credit score system than individuals. There are multiple types of business credit scores, with each having its own unique set of criteria and scoring range.

Responding to small business cost increases

From law changes to economic shifts, there are a range of things that can raise the operating costs for small businesses. So, expense increases are a common challenge for such companies.

Rising costs can have major financial impacts on businesses. In some cases, they could accelerate financial difficulties a small company is facing to the point that the business could be at risk of failing. Small business owners who are facing the potential of a business failure due to financial problems, such as debt struggles, may find it prudent to discuss their options for addressing the problems with a skilled bankruptcy attorney.

Could 2019 be a rough year for small businesses?

The economic conditions for small businesses can shift quite a bit over time. What will 2019 hold for such companies? Some predict that it could be a challenging year for U.S. small businesses.

Take, for instance, a recent article on Forbes’ website. The article, by an economics professor, argues that there are multiple factors that could put a lot of financial pressure on small businesses this year and that such pressure could put a fair amount of such companies at risk of failure.

Consequences of not paying employees before bankruptcy

If business is bad and you are considering Chapter 7 bankruptcy, experts advise you to keep your employees at the top of your payment schedule.

In a Chapter 7 bankruptcy, the trustee places those owed salaries, wages or commissions below only secured creditors to receive your liquidated assets. If there isn’t enough to cover the debt, employees will see only a portion of what they are owed.

Cost-cutting tips for businesses

With the new year about to start, many companies are reviewing their financial situation in order to help set their goals for the upcoming year. Some business owners may end up seeing some things they don’t like during such reviews.

What can business owners do when their company is struggling financially or they are trying to head off potential future financial difficulties? For one, they can take steps to cut costs

New Chapter 11 process for small businesses proposed

Chapter 11 bankruptcy can provide an important route forward for businesses that are struggling with debt. However, companies can encounter challenges when it comes to pursuing this route. Some argue that this may especially be the case for small businesses.

Arguments have been leveled that the current Chapter 11 system here in the U.S. isn’t well-designed for smaller companies. Worries over the costs and ownership implications of the Chapter 11 process may be leading some small business owners to stay away from this bankruptcy option.

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