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What is Chapter 11 Bankruptcy and Should You File for It?

chapter 11

 

Do you want to know what Chapter 11 bankruptcy is? Many people don’t have a clear idea about this debt reorganization strategy. Should you file for it if you’re in financial trouble? If you make efforts to study Chapter 11 of the United States Bankruptcy Code, you will get the best answers to these questions. Let us explore the pros and cons of Chapter 11 bankruptcy.

Chapter 11 Bankruptcy – An overview

Named after Chapter 11 of the United States Bankruptcy Code, it is a form of bankruptcy that allows businesses and individuals to reorganize debts, assets, and business affairs. Though it is open to all types of businesses, including sole proprietorship, corporation, partnership, and also to individuals; corporate establishments are the most prominent ones to make use of this bankruptcy option.

Should you opt for Chapter 11?

Should you file for Chapter 11 bankruptcy if you’re in financial trouble? To answer this question properly, you need to check the pros and cons of this reorganization bankruptcy. It involves many more complexities than other bankruptcy cases. Further, it stands taller in terms of expenses involved. That is to say, Chapter 11 is the most expensive form of a bankruptcy proceeding.

What do these aspects indicate?

You must carefully consider all options available before choosing this one. Smart business owners always analyze things deeply and find out Chapter 11 is the best among all other possible alternatives.

Two conditions make a company/individual eligible to file a Chapter 11 case. If your business liabilities are higher compared to assets, you can file a Chapter 11 case. Your case must be substantiated with a balance sheet test. If your business cannot pay off its debts as they come due, you can file a case for bankruptcy under Chapter 11 code. An income statement test should be used to make your arguments logical and convincing.

chapter 11 bankruptcy

Let us check the pros of Chapter 11 bankruptcy;

1. Chapter 11 helps you restructure the debts and other liabilities

When you file for this type of bankruptcy, you will get ample time to reorganize the debt. During the proceeding, the court assists your business in restructuring the debts and obligations. Critically, this bankruptcy version offers you a fresh start. You get some breathing time and space to reorganize all affairs systematically. The terms and conditions are determined based on your fulfillment of the liabilities under the reorganization plan.

2. Your business stays open

Most of the businesses remain open and stay functional even after filing for Chapter 11 bankruptcy. It is one of the most prominent advantages of this bankruptcy plan. Several large U.S. companies file for this reorganization plan and continue their operations to ensure speedy revival.

3. Minimal intervention from the court under normal circumstances

In most cases, the court allows the debtor to run the business as usual. A trusty is appointed only when the court finds any mismanagement, incompetence, dishonesty, or fraudulent practice. So, you can expect minimal intervention while running your business during a crisis. The only restriction is that you need to get permission from the court while making critical decisions.

4. Fast acceptance for a feasible reorganization plan

As an individual or business, you get an opportunity to propose a reorganization plan under Chapter 11. If you submit a feasible restructuring plan, you can expect fast approval. A good plan always includes the best strategies for:

– Downsizing of business operations to lower expenses

– Renegotiating of current debts

– Liquidating all assets to repay creditors

If your method of approach is sensible and practical, the court gives a fast approval. You can move forward with confidence to tackle the challenges and recover fast.

5. Safeguards the interests of all stakeholders

The bankruptcy court approves only a proposal that safeguards the interests of the creditors. As a debtor in possession, you need to come up with a reorganization plan that accommodates the needs and interests of all stakeholders. If the debtor cannot design a program, the court asks the creditors to submit a plan.

All stakeholders, including shareholders and creditors, have the right to support or oppose your plan and other suggestions that need bankruptcy court approval. After assessing their feedback and suggestions, the bankruptcy court decides the course of action.

With the help of a special committee, unsecured creditors are allowed to participate in the Chapter 11 case. The constituted committee can hire attorneys and other professionals for the necessary guidance and support. The debtor needs to pay these expenses.

6. Flexible terms and conditions

You need to propose a restructuring plan within four months of filing a Chapter 11 case. The date for plan submission (exclusivity period) can be extended up to 18 months if you convince the court with a genuine reason.

After the completion of the exclusivity period, the creditors and shareholders can submit their competing reorganization plans. These people can move to the bankruptcy court to dismiss the restructuring plan if they are not satisfied with the steps taken by the debtor. In such a situation, the court dismisses the case or converts it to Chapter 7.

Some Chapter 11 cases may end within a few months. Complex cases always need more time for the final settlement. Generally speaking, a Chapter 11 bankruptcy case is settled between 6 months and 2 years.

7. Businesses can emerge as stronger from Chapter 11 bankruptcy

If you develop a concrete restructuring plan and follow it with uncompromising discipline, your company can emerge as a stronger business. It is a time for reflection and to learn about the mistakes. You need to evaluate your mistakes and develop a Chapter 11 plan that takes care of the needs of all stakeholders. This method of approach helps you emerge as a winner.

A Chapter 11 plan is a contract between the debtor and creditors and/or shareholders. This contract clearly shows how your business operates and pays its liabilities or obligations in the future. You can seek professional help to design a well-thought-out plan. Experienced Chapter 11 financial advisors teach you how to reorganize your business to solve the current crisis and deal with future challenges with improved efficiency.

loan restructuring

Cons

1. Chapter 11 bankruptcy is the most complex plan available

Chapter 11 is the most complex of all bankruptcy plans available. If you don’t have a clear plan, you may end up facing many more challenges and complexities. So, you need to check all other options carefully before making a decision.

2. Making major business decisions need permission from the court

One of the difficulties is that you need to seek permission from the court to make major business decisions. Bankruptcy court permission is needed for:

– Sale of assets except for inventory

– Starting or closing a lease or rental agreement on personal or real property

– Expending or closing down business operations

– Mortgaging or securing other types of loans or borrowings

– Making decisions on retaining and paying attorneys

– Signing up new contracts or modifying the existing ones with unions and vendors

Though the debtor stays in charge of the business after filing Chapter 11, he/she needs permission from the bankruptcy court to make critical decisions.

3. Confirmation of a proposed Chapter 11 plan is not easy

Several factors influence the confirmation of a proposed Chapter 11 plan. It is not easy to get your plan approved. Your plan needs to fulfill several requirements. The approval of your plan is known as confirmation. After assessing all relevant factors, the bankruptcy court takes the final decision. It can be a daunting task even for qualified business professionals.

4. Chapter 11 is highly expensive

Chapter 11 bankruptcy involves high reporting and oversight expenses. Further, the debtor has to spend more money on procedure-related tasks. Extensive procedural requirements demand professional expertise, especially legal work on behalf of several parties, including the debtor, creditors, and shareholders. All these aspects make this type of bankruptcy highly expensive.

So, you have a clear idea about the pros and cons of Chapter 11 bankruptcy. Now, let us explore the most important factors that make a powerful impact on the approval of a Chapter 11 plan.

Feasibility is a vital factor

The feasibility of your proposed plan is critical. The court checks the feasibility carefully before granting approval. The debtor has to prove that the proposal is good enough to raise the expected revenues during the plan term to cover all debts and other types of expenses.

Good Faith

Being a debtor in possession, you have to convince the bankruptcy court that the plan has been proposed in good faith. If the court finds any forbidden methods under applicable law, your plan will be rejected.

Creditors’ best interests are highly important

The court accepts your proposed plan if it meets the best interests of the creditors. The test for best interests’ in Chapter 11 demands that creditors have to be repaid as much as they would have received under Chapter 7 liquidation.

The debtor has to pay the debt in full to on certain occasions to meet the best interests’ test. On most occasions, Chapter 11 applicants might be neck-deep in debt. These people can fulfill the best interests’ test requirements by paying creditors a certain percentage of what they actually owe.

Fairness and equitability are extremely significant

You need to submit a fair and equitable Chapter 11 plan to get the confirmation from the court. Certain conditions are being laid out to meet the fair and equitable’ test. The debtor in possession must pay the secured creditors at least the value equivalent to their collateral. Your plan should fair and equitable enough to protect the interests of the secured and unsecured creditors. The fair and equipment test becomes valid only if the creditors vote against your proposal.

Generally speaking, Chapter 11 bankruptcy is a good plan to overcome your debt issues. However, you must convince the court about the recovery plan. Submitting a well-thought-out, feasible, and practical reorganization plan; the debtor in possession can expect fast acceptance from the court. Chapter 11 allows you to keep the business functional while making efforts to deal with the existing debts and other related challenges.

Why should you hire an attorney when you decide to file for Chapter 11 bankruptcy?

Bankruptcy-related legal processes have always been highly confusing and complicated. The debtor in possession has to be knowledgeable about a wide variety of aspects. You should also prepare a perfect plan to convince the bankruptcy court and get the confirmation. That is why you need to hire an experienced attorney who specializes in this area.

Accomplished experts can offer you the best guidance and support and walk you through every step responsibly and efficiently. That is to say, professional help always helps you solve this stressful and complicated process without any hassles.

Proper assessment of your financial situation

Experienced bankruptcy lawyers analyze your finances in detail. These people apply their expertise judiciously to review your existing financial situation before offering the right advice that protects your interests. Moreover, they make you aware of your responsibilities and rights when it comes to filing a Chapter 11 case.

Preparation of an error-free petition

Trusted bankruptcy lawyers explain all regulations that make an impact on your case and guide you through all steps like a trusted companion. Filing a Chapter 11 petition involves strenuous paperwork. These experts make sure that all the necessary information is included and listed in your petition. Preparing an accurate and detailed petition, an attorney makes your life a lot easier.

The best protection from creditors

An experienced bankruptcy attorney can offer you the best protection against the harassment from the creditors. You can learn what creditor behavior is termed as offensive or abusive by the governing rules. This awareness makes you aware of your rights during the Chapter 11 bankruptcy filing process.

So, professional help is inevitable. Seeking professional expertise offers you much-needed peace of mind as a debtor. Under the expert counsel and support of an accomplished attorney, you can make the right decisions and create the best Chapter 11 plan that solves your existing problem efficiently.

 

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Why Every North Palm Beach, FL Business Owner Needs a CPA

CPA in North Palm Beach

 

Are you a business owner in North Palm Beach, Florida? You must have your own vision and a road map to achieve your business goals. Most people focus on all these areas to grow their business fast. However, many undermine the importance of hiring a CPA (Certified Public Accountant) to get the best advice on financial matters. If you are one of them, you are making a critical mistake that invites disastrous consequences in the future. Why does every business need to hire a CPA North Palm Beach?

The most important benefits that an accomplished CPA offers for your business are:

– Expert tax advice

– Timely audit support

– Generation of detailed financial statements

– Accurate risk evaluation

– Best advice on securing loans

– Financial analysis and checkup

If you get these benefits, why shouldn’t you hire a CPA North Palm Beach? Offering unparalleled financial expertise and knowledge, an experienced CPA helps you save money and time and makes your life a lot easier.

Accountant North Palm Beach

File your taxes properly

Many business owners in Palm Beach find it hard to tackle the complexities involved with tax-related matters. A slight mistake can lead to hefty fines. A CPA can guide you to file taxes properly. Using their expertise and experience, CPAs prepare and file taxes for their clients. Since these professionals have deep knowledge of full tax compliance, vital deadlines, and deductions, you can seek their expertise to stay guarded against tax complications.

Insightful financial statements and checks

CPAs are good at preparing financial statements that can be effectively utilized to support your business in several ways. No matter whether you need advice on investor reports, acquisitions, loan applications, you can hire the expertise of a certified public accountant to generate the best reports. Many business owners also seek the expertise of a CPA to get a realistic picture of the overall financial health of the company.

The complexities involved with full-service audits may seem like alchemy to the uninitiated. An experienced CPA in North Palm Beach verifies the accuracy and authenticity of your numbers efficiently. He/she checks assets, bank accounts and inventories directly to perform the verification process efficiently.

CPA in North Palm Beach, FL

Make better financial decisions

Engaging in day-to-day matters, business owners are busy in many ways. Moreover, most people don’t have the knowledge and expertise in financial matters. CPAs are trained professionals with deep knowledge of financial matters. Using their expertise smartly and also with a broad outlook, they take an objective assessment of your financials.

Experienced certified public accountants in Palm Beach, FL evaluate risk and help you make informed business decisions. You can seek their expertise to navigate economic downturns. Under the expert guidance of a CPA, business owners reallocate resources to enhance overall performance.

In short, CPAs bring crucial expertise to your company and keep your finances in order. All these reasons are good enough to prove that a CPA North Palm Beach is an inevitable aspect for all types of businesses. You need to hire an accomplished professional to take your business to the next level.

 

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How to Start an SEO Company in Orlando, FL

seo services

Gone are the days when people used to travel around for their daily routines. Thanks to online portals and websites, carrying out numerous tasks is possible right from a laptop or mobile. This change also offers immense opportunities for businesses. To tap billions of potential customers online, many entrepreneurs stage their sites. However, online marketing has become extremely competitive and daunting. You need a reliable SEO service to get away with all such hassles. Many SEO services render their expertise and earn handsome profits. That triggers the idea of starting an Orlando SEO company. Let’s find out how to start an SEO agency.

Tips to start an Orlando SEO company

Many online users come across SEO services and their success. They think that an SEO service may have to try leg and arm to attain the desired success. However, starting an SEO company isn’t as difficult as you think. If you’ve some basic knowledge of marketing and could show determination, you may scale well in this arena. Still, you need some solid info on beginning this profitable venture. Here’s how to go about setting up your SEO company.

Get certified

Having certificates isn’t mandatory to start a Florida SEO company. However, credentials let you beat the competition and win prospects. Website owners are more likely to choose a service that has qualified SEO experts. Even if you’re a proficient online marketer, it’s best to get certified.

Many sites offer SEO certificates. Join a couple of reliable sites, complete the courses, and get your certificates. Learning these courses will also sharpen your skills and make you familiar with certain new and innovative online methods.

Orlando SEO

Choose a niche

Starting a generic SEO venture isn’t a good idea. Competition is stiff and you may get lost in the way. This is especially true when you’re getting started. To beat the clutter and competition, it’s advised to focus on a particular niche. Find out a niche or topic that interests you. Do you’ve some knowledge about health and fitness business?

Can you market money making programs and other digital products like on Facebook? All such considerations will narrow your search. Plus, it’ll let you dedicate to a few businesses you’re familiar with. When potential clients will contact you, you won’t need much info about their venture. Also, you may already know their expectations. That will ease your marketing tenure and raise confidence among your clients.

Gain experience and build a portfolio

When it comes to setting up an Orlando SEO company, most professionals are in a hurry. They hardly complete any course and build a portfolio. Many such individuals fail to survive the competition. Sooner or later, they wind up their venture and say goodbye to this lucrative field. If you don’t wish to be among these folks, consider gaining experience and build your portfolio.

Serious entrepreneurs always hunt for qualified and experienced SEO companies. They’re ready to pay a premium price, but they want a certified and experienced service. So, start with small projects. You may offer your services at gig or freelancing sites. Forums and social sites are other helpful sources to land SEO gigs.

Be sure you charge less for your initial gigs. By doing so, you’re likely to get more work and more experience. Essentially, you invest in experience and portfolio. So, don’t think about making money in a short while. Once you gain some experience, build your portfolio online with links and references to your clients.

Adopt multiple SEO methods that deliver

Back then, SEO was simple with little to no analytics. Very few sites were online. As such, the completion was minimal and getting high rankings was easier. However, things have gone dramatic changes in the past few years. Today, millions and millions of websites operate online. The situation is getting even more competitive with the addition of hundreds of sites daily.

To add fuel to the fire, search engines keep changing and updating their search algorithms. In such a situation, you ought to employ multiple online strategies to stay afloat on top. In addition to older techniques, you should learn newer tactics. You may even customize certain techniques for betterment. The horizon is unlimited, so is your learning curve.

Get familiar with various marketing trends such as organic SEO, paid search campaigns, Google maps listings, social media marketing, mobile marketing, image marketing, video marketing, news marketing, and voice search. All these tactics will help you market your clients’ websites effectively and let them scale their ventures. If your clients benefit from your services, they’ll stick to you. Even better, they’ll bring you new customers.

SEO Services Orlando

Charge affordable fees

Of course, you want your Orlando SEO company to make big bucks. However, don’t charge too much. At the same time, don’t charge too little. If you charge too much, you won’t get more customers. On the flip side, if you charge less, potential clients will doubt your credibility. As a thumb rule, price your services modestly, and always tell a story.

You may also offer customized solutions. For instance, certain businesses may need help with social media inclusive marketing only. On the flip side, some entrepreneurs may want a comprehensive marketing package that covers everything from organic search to social media. Based on the package, you may charge accordingly. In this way, you can attract various segments for better profitability.

Market your venture

Okay, you’ve certificates, experience, a profitable niche, innovative SEO tactics, and a unique selling approach. What’s next? Will you gain clients quickly? No way! You’ve to market your venture and wait for some time for clients to roll in. Remember, even your SEO business needs marketing.

If you can’t market your Orlando SEO company, you can’t market other ventures. Essentially, it’s your test. If you market your company proficiently, you can win clients easily. Consequently, you could promote your clients’ ventures by applying the techniques you employed for marketing your SEO agency.

Concluding words

Starting an Orlando SEO company is a fantastic idea for anyone with a marketing background. However, you ought to set up your venture effectively and promote your services proficiently. If you fail to do that, you’ll lag behind. So, follow the above advice properly and you could scale your SEO venture amid tough competition.

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How to Start a Car Locksmith Business in West Palm Beach, FL

west palm beach car locksmith

Overview

A locksmith is a professional who gives lock services such as lock replacement and security. It is quite a mechanical career that thrives in creativity. The West Palm Beach market offers immense opportunities for a locksmith. However, if you are to attract a strong client base, and get referrals, you have to be prepared for a challenging career. The following factors will play a critical role in your locksmith career:

Professionalism

Being a professional as a locksmith starts with taking a basic course in the field. It is important that you take an apprenticeship that covers the following areas: theory, in-house training, mentorship, and a practicum. Florida is quite liberal on who can become a locksmith and there are no significant barriers on the same. Note that being a locksmith can take as much as four years. However, this should not be a problem because you are paid as you work anyway. Again, if you want to be a successful locksmith, start with working for someone else, then be independent and pursue your career goals.

Most states do not require a locksmith certification. However, whether this is required or not, you need to have one as it will give you’re a competitive edge among your peers. It also shows that you are a professional auto locksmith. Most exams will require you to score a minimum of 70 % if you are to get a certificate. You can contact any of the following organizations for certification:

Registered Locksmith (RL)

-Certified Professional Locksmith (CPL)

-Certified Registered Locksmith (CRL)

There are several skills which play a critical role if one is to realize an optimal career as a locksmith. To start with, a locksmith requires effective hand-eye coordination as well as dextricity. Second, a good memory helps one to remember different lock models. Most car locks have a higher level of security due to the higher probability of a car being stolen. Lastly, one should be able to hand all types of clients including unruly clients.

Continuing education will help you to widen your expertise and be exposed to the latest trends in the auto locksmith field. The auto locksmith industry benefits from advancement in technology. You can tap the benefits of such advanced technology through refresher courses.

When you take a career as a car locksmith West Palm Beach, be sure to engage in legitimate business. Authorities in Florida are not going to take it lightly if you engage in illegal business. Having the knowledge about locks should not be a passport to engage in illegal activities. Again, do note that for a locksmith to work in Florida he or she must go through a background check and the fingerprints are taken.

West palm beach automotive locksmith

Your Prices

A car locksmith in West Palm Beach should have a consistent policy as pertains to all clients. As a general rule, you should be in a position to offer a quote in advance and avoid hidden charges. The cost of car lock services depends on the particular service in question as well as the type of car lock. For example, a modern car might require more work because it may be having a power door lock.

Your Target Clients

An ambitious car locksmith is not going to stay in the comfort zone and stick to one type of clients. It is true that choosing a specific niche is better than targeting all types of clients, but having a mix of clients is an effective tool of diversification and avoiding being considered a scam. At the center of this is the need to understand different car models in order to give an optimal experience to your customers.

Again, people do not need a locksmith every day. It is difficult to have regular clients and customers every day. In that case then, the best thing to do is to have a variety of clients. The word of mouth is of paramount importance. You will find that you will be able to attend to all your clients without a clash of the schedule.

Services Offered

Most of the services of a car locksmith revolve around unlocking a car. However, there is a lot that a locksmith can offer. Car owners may require installation of a security system. In such a case, a car locksmith in West Palm Beach can offer the relevant consultancy. Other functions of a car locksmith in West Palm Beach include the following:

-If the key is locked inside the car, he or she can help you to retrieve it

-Key replacement

-Help in ignition

-Removal of a broken car key

Open a 24 Hour Service

Just like a hospital which receives clients 24 hours a day, 7 days a week, a locksmith offers an essential service. Locksmith services boarder an emergency service. Car owners will need help with their locks at any day, any hour. In such a case then, your business should be sensitive to the needs of the car owners and assist them in their hour of need. If you show your clients that you are available any time, they will always have your number, and will call you when they need you.

west palm beach locksmith near me

The Power of Marketing

In order to understand how you should execute your marketing strategy, you need to understand the typical process that clients follow in order to call a locksmith:

-One faces a problem (for example, locking oneself out of a car or a home)

– One searches for a locksmith using his or her mobile phone (keywords used include locksmith West Palm Beach, locksmith near me)

-One calls the business that is highly ranked and has positive ratings

The starting point of a good marketing strategy is your website. You should evaluate how long it takes for your website to load. The question on if your website is mobile responsive is a foregone conclusion- most people will make a locksmith search using their mobile phone. Do note that most clients no longer concentrate much on the traditional advertising methods, a billboard for instance.

A good Search Engine Optimization (SEO) strategy is going to ensure that your website is visible. The SEO strategy cannot ignore location-based marketing. In addition to that, concentrate more on natural links and not buying links. Lastly, the social media is an indispensable tool of marketing.

Conclusion

A car locksmith business, as a business niche, is not a business field which will be under threat. Car owners will always need a locksmith. It is therefore critical that you exploit the opportunities that come with locksmith services. Again, if you want to be successful in your business, start with your website, and offer professional service.