Bankruptcy can be a tough and emotional experience for business owners. Despite their hard work, there are factors that can lead to financial difficulties. If a business struggles to pay debts or keep up with market conditions, it should prepare for potential challenges as soon as possible. To do so, business owners must watch out for warning signs early to determine if their business may be headed for bankruptcy. Early indicators of potential bankruptcy High debt, low cash flow: When a business has a lot of debt and needs more money coming in, it can cause problems with creditors or tax debt ..read more

If you feel overwhelmed by tax debt, the Internal Revenue Service offers a compromise program you can use as a lifeline. This program allows you to settle your tax liabilities for less than the total amount owed. However, there are requirements that you must meet to be eligible. Payment options: lump sum or periodic? With lump sum cash, you make an initial payment with your application. This should be 20% of your total offer amount. If your offer is accepted, you will have five payments to clear the remaining balance. If you prefer flexibility, you may opt for a periodic payment. You will ..read more

If you’re not familiar with California tax laws, it can get frustrating to deal with your tax debt. To help you better understand your rights and responsibilities as a taxpayer, here are answers to frequently asked questions about California tax debt: 1. What happens if I fail to pay my California state taxes on time? Failing to pay your state taxes on time may result in penalties, interest charges and collection actions, such as garnishing of your wages and bank account seizures by the California Franchise Tax Board. 2. Can I negotiate with the California Franchise Tax Board to settle a tax d ..read more

The process of filing for bankruptcy or seeking debt relief could vary, depending on the circumstances. It could vary based on the debtor’s situation and what type of bankruptcy is most appropriate considering potential legal implications. Sometimes, a bankruptcy case could require adversary proceedings. They are like lawsuits under an encompassing bankruptcy case. It could include one or more plaintiffs and defendants involved in the same complaint. Adversary proceedings are typically necessary when the plaintiff seeks a specific type of relief. However, they might only be relevant if the Fed ..read more

Filing for bankruptcy in California is very rarely a completely voluntary action. There are a great many myths associated with this process that make it highly undesirable. However, you should know that filing for this type of relief doesn’t have to ruin your life. You can discharge the debt and get back on the right track with some effort. Do both partners in a marriage have to file? One of the most common myths that surround the institution of bankruptcy is that both spouses in a marriage are required to file. However, this is not always the case. It isn’t uncommon for one partner to have th ..read more

When people start businesses, they do so to expand and grow their investments from various funding sources. However, different factors could put companies in tight spots, necessitating owners to file for bankruptcy. Small businesses and massive corporations could file Chapter 11 bankruptcy to reorganize and change direction based on their financial capabilities. However, what happens if they face fraud after filing a bankruptcy case? Most of the time, the debtor commits actions considered bankruptcy fraud. Still, other involved entities, such as the creditor, trustee, petition preparer and oth ..read more

Every year, thousands of California residents declare bankruptcy. Many people living under the weight of crushing death may see declaring bankruptcy as their only solution. Unfortunately, you may not be aware of many rules to the bankruptcy process. While you may think bankruptcy will eliminate all your debt, that may not be true. Chapter 7 versus Chapter 11 Part of the determination of whether or not all your debt will be discharged under bankruptcy is whether you are allowed to file a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is what people typically think of when they think of bankruptc ..read more

Consumer fads come and go, but what happens to the companies behind these once-fashionable items? For Instant Brands, the manufacturer behind the electric cooking device Instant Pot and Pyrex glassware, the only way was down after a significant sales slump left the company in terrible shape. Instant Brands recently filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of Texas. Documents revealed that the company had over $500 million in assets and liabilities. The company was driven into a financial corner in recent years after sales of its most p ..read more

Paying off debt can feel impossible when your monthly expenses consume a large portion of your income. But being debt-free could still be possible if you take the right steps. It will require some dedication, but the peace of mind alone could be worth it. Control your spending habits to avoid going deeper into debt If you have a habit of swiping your credit card for every purchase, put it away. Borrowing credit to pay your bills and costs could increase the amount of interest you have to pay and push you further into debt. Paying with credit cards also makes it harder to keep track of expenses ..read more

There are few things that California residents dread more than calls from debt collectors. While no one takes on a debt assuming they won’t be able to pay it off, financial situations change quickly, and people find themselves owing bills they can’t afford. Before opting for a debt settlement agreement, consider some their pros and cons. What is debt settlement? Debt settlement, sometimes referred to as a debt relief plan, involves working with a creditor to settle your debt. In most cases, debt settlement sees the debtor pay less than they owe, typically a lump-sum payment. Pros of debt settl ..read more