Weintraub & Selth, A Professional Corporation
Call Today 310-584-7702

Los Angeles California Bankruptcy Blog

Consequences of misclassifying an employee

It's important to know the difference between employees and contractors to avoid misclassifying them. Treating a contractor like an employee without the burden of offering them benefits, providing workers' compensation or paying certain state and federal taxes can lead to costly lawsuits. 

Common claims in class-action wage and hour lawsuits

California businesses are increasingly finding themselves the target of class-action labor lawsuits. Often referred to as a wage and hour suits, these claims can threaten the health of businesses large and small. A collection of employees, or former employees, alleging workplace violations can expose an employer to substantial liability. These suits may even have the power to push a business into bankruptcy.

The violations typically alleged in class-action wage and hour lawsuits include:

How to inform employees about the business' bankruptcy

When business owners struggle under debt, their primary concern is often the survival of the business itself. That is also the first factor they consider when debating which chapter of bankruptcy to file. 

However, just as with running a business, there are several other considerations that business owners must make when filing bankruptcy. One of those issues that many might want to avoid is telling their employees about the bankruptcy. 

How could your business change after a Chapter 11 reorganization?

The reorganization plan of Chapter 11 bankruptcy allows business owners to create a strategy for how they will repay debts over time and keep their business open.

However, this plan often requires business owners to restructure their operations as well. So, how could a business change when implementing their reorganization plan?

Did one bad decision or mismanagement lead to bankruptcy?

Staying competitive in the world of business often requires anticipating trends and being ready to meet consumer demands if and when those trends arrive. This is a gamble, of course. Correctly predicting a trend in consumer behavior can really be profitable, while an incorrect prediction can be financially disastrous.

One of the nation’s largest distributors of firearms recently filed for bankruptcy, claiming that it bet big on an event that went differently than expected. Oddly, that event was the 2016 presidential election.

The elements of confirming a Chapter 11 plan for reorganization

After careful consideration, a business owner might determine that filing Chapter 11 bankruptcy is the right path for them. It will allow them to keep running their business operations but help them relieve their debt as well. 

One essential aspect of filing Chapter 11 bankruptcy is creating a plan for reorganization. In this plan, business owners clarify how they will address the debts they owe.

Dealing with your business's past-due taxes through bankruptcy

For a business struggling to stay afloat, bankruptcy is often the best option to achieve a clean slate. But, what happens when part of your debt is past-due federal taxes? Despite what you may have heard before, businesses can eliminate a portion of their federal tax debt through bankruptcy if they meet certain conditions.

A partnership or corporation can file for bankruptcy under Chapter 7 or Chapter 11. Below are the ways each type of bankruptcy can help discharge tax debts.

Knowledge is power: reaching an informed debt-relief decision

Many business owners across Los Angeles and Southern California reasonably assume that reaching out to a bankruptcy attorney for debt-linked assistance will result in guidance that promotes the upsides of a bankruptcy filing.

After all, providing legal counsel that stresses bankruptcy is what a bankruptcy legal team centrally does, right?

After more than a century of success, FTD files for bankruptcy

In today’s world, no company is immune from the pressures of market competition, regardless of how long that company has been around. Even time-tested ideas like flower and gift delivery can prove to be unprofitable if the company encounters an unforeseen problem or makes an unsuccessful business decision.

Florists’ Transworld Delivery (more commonly known as FTD Companies Inc.) recently announced that it is filing for Chapter 11 bankruptcy, citing about $200 million in debt from a competitor acquisition that didn’t work out. In 2014, FTD purchased rival company ProFlowers to eliminate a competitor and to merge the two companies into a larger, more streamlined venture.

Equipment purchases: A common source of debt for small businesses

One thing that can have big impacts on a company's success is what equipment it has. There are many industries in which having up-to-date equipment is critical for a business when it comes to staying competitive. Getting the machines, devices and technology one's company needs can be expensive. So, it is not uncommon for business owners to take on debt to buy new or upgraded equipment.

Sometimes, entrepreneurs turn to specialized equipment loans to finance such purchases. These are loans given specifically for the buying of business equipment. In this type of financing, the machines and devices purchased with the loan serve as collateral.

Weintraub, Selth & Nguyen, APC | 11766 Wilshire Blvd., Suite 1170 | Los Angeles, CA 90025 | Phone: 310-584-7702   | Map & Directions