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Is it smart to continue doing business with a company who has filed Chapter 11 and owes you past debts?
Smart depends on many things...especially their and your business. Certainly i would put them on CASH ONLY, or very limited credit. Continuing business with them does not effect your calim to be paid the past due amounts, or gert them to you any sooner or later - or in any more or less amount. Except, if your a vital supplier, they may need your product to continue operating at all, and that could effectively through some weight. If a new customer walked in the door and said... I've shown I can't run my business profitably, I haven't paid my bills timely, and many not at all, for some time, the people that know me and my money sources won't give me any more and my other vendors generally won't either, in fact I'M IN BANKRUPTCY, but listen, I want to do business with you - just think f all the money you can make with me...please let me have it and I'll pay YOU soon." What do you think the "smart" answer should be? Kinda' funny right?
What else can I help you with?
What is Chapter 7 liquidation and Chapter 11 reorganization?
Chapter 11 concerns the regulations for allowing the debtor to enter into an agreement with their creditors to allow a business to continue to function. The full regulations can be found on the website of the United States Courts.
What is chapter 13 reorganization?
There is no such thing. Business entities cannot file for chapter 13, only persons. Chapter 11 is for reorganization of business entities, or for persons who owe more than $360,475 in unsecured debts and more than $1,081,400 in secured debts.
What happens if a business goes into chapter 11 but an individual has personally guaranteed some of the business debts?
Liability
Is an incorporated company liable for its business debts?
yes
What happens to unsecured debts when a chapter 13 bankruptcy is dismissed?
The debts are still valid and creditors can continue with collection procedures including, in most cases, a lawsuit.
What company could help a business pay it's debts on time?
Wells Fargo is a company that can help a business or person pay their debts on time. Wells Fargo has the Debt Pay Down Solution plan which works with you or your business to help debts get paid, not a minute late.
Difference of chapter 11 and chapter 7?
In chapter 11 bankruptcy, a business (usually) is trying to stay open by modifying its debts and getting rid of some. In a chapter 7 bankruptcy, a business is liquidating itself and usually has to shut down as a result.
What is the difference between a Chapter 7 and a Chapter 11 business bankruptcy filling?
In Chapter 7 bankruptcy, assets of a business are sold to help pay back their debts. In Chapter 11, businesses can keep their assets and try to negotiate new terms with their creditors.
If you own a business and you want to file Chapter 7 would business related debts that you put on personal credit cards be covered?
Yes, if you have acceptable documentation.
What does chapter 11 bankrupty mean?
Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs and assets. It is generally filed by corporations which require time to restructure their debts.
What is DIP Payment?
DIP (Debtor-in-Possession) payment refers to financing provided to a company that is undergoing Chapter 11 bankruptcy proceedings, allowing it to continue operations while restructuring its debts. This financing is prioritized over existing debt, giving lenders a higher claim on the company's assets. DIP financing is crucial for maintaining business operations, paying employees, and managing ongoing expenses during the bankruptcy process. It helps stabilize the company and can facilitate a successful reorganization.
What does the Bankruptcy Chapter 11 state?
Chapter 11 bankruptcy is for corporation entities or partnerships, including home businesses and small business owners. Chapter 11 allows one to make a debt re-organization plan designed to keep a business operational while debts are being repaid.
