Bankruptcy Debt Woes for Small Businesses

Small businesses need business planning for the future, and that planning needs to include what to do in the event of a bankruptcy.

Filing for a bankruptcy is one of life's more challenging moments, guaranteed to be a gut-wrenching experience. It's a tough decision to make when someone's hopes and dreams have been incorporated into a business. It's a very personal decision as well and goes to the heart of how a person was striving for success and failed.

While some regard the bankruptcy process as a way to get out of debt, there are things that people don't know – things in the fine print they need to be well aware of before acting too precipitously. Last year's small business bankruptcy statistics are a bit on the dismal side, clocking in at a high rate of roughly 65% of small businesses going under. Sure, some of it might have had something to do with the economy, but that is just the tip of the iceberg when it comes to reasons.

The real reason for most of the small business bankruptcies is that the owners came face to face with a major cash crunch. Debts outstripped their income and they had no money to pay off the bills. While this can happen to any business, it hits a small business even harder, as they tend to have more of their personal resources invested in their enterprise.

By the time things have gotten too overwhelming to handle, the owner would have the option to declare Chapter 11 or other applicable chapter suitable for a small business bankruptcy. To do this requires the services of a skilled bankruptcy attorney.

At this point, the attorney and client sit down and discuss what kind of company the owner operates; e.g. if the company a sole proprietorship or not. If it's a sole owner, s/he doesn't need to ask for anyone else's consent to file for bankruptcy. On the other hand, if there is a partnership agreement in place, joint consent is needed to file. In any event, the services of a skilled bankruptcy attorney are crucial in order to file bankruptcy under the proper chapter and in the proper manner.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Juvenile Crime Is a Societal Issue

Juvenile crime, while on the rise and a real concern, has its origins in societal issues.

For the most part, juvenile crime is considered to be criminal acts that are carried out by minors, and while we seem to "get" why adults commit crimes, it's harder to figure out why juveniles do. This means society is at a loss for what the causes seem to be and therefore, what to do about this type of crime.

Most often the types of crimes juveniles (teens) are involved in involve drug use, illegal drug sales, bullying, vandalism, assault and battery, and gang violence. Evidently statistics show there are a number of possible factors that would encourage teens to commit crimes; e.g. drugs present in the teens environment, domestic violence, family alcohol problems, and dysfunctional families.

If there is violence at home, it's not too much of a stretch to imagine that what teens see at home will be repeated on the streets. This is normal behavior for them and they have nothing to compare. If firearms happen to be in the home, this kicks the risk factor up another notch. Add into the mixture all the gratuitous violence in the media and there is a recipe for disaster.

Politicians are often pressured to make a difference in the juvenile crime rate: to stop it, to deal with gang violence and the drug problems. The difficulty is, most programs that exist today to deal with "juvies" are programs that kick in after an offense has taken place. There is nothing effective that deals with at risk youth prior to them offending.

Generally speaking juvenile crime starts at home, which then makes this whole issue one that needs to be addressed by society as a whole. Where to start remains the burning question of the day, with rumblings that youth need a suitable alternative to gangs. What those alternatives may be remains vague. In the meantime, juvenile crime continues to be an issue, and attorneys who deal with this area of the law strive to do the best they can for their clients.

If ever there is doubt about how to proceed when a youth has been charged with a crime, make it an immediate point to contact a highly skilled juvenile attorney and find out what rights the youth has in the criminal justice system.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Call Me the 12th of Never

Don’t you just despise collection calls at home that always come at the most awkward moments? Have them call you back the 12th of Never.

Collections calls have a tone all of their own and many of them are less than polite. Whether or not you do owe money does not mean collections personnel have the right to harass you in the privacy of your own home. You do have rights, even as a debtor, and threatening calls day or night are out of line.

If you are receiving these kinds of calls at home, do two things. First check your state legislation to find out what the law is in your state about getting collection calls. Then contact a skilled attorney to get the rest of your questions answered. You should know that there is something called the Fair Debt Collection Practices Act that outlines when a debt collector may call.

If you do owe the money the collector is trying to get you to pay, but don't have the means to deal with the bill, seek credit counseling rather than let the debt collection process continue. If you don't do this, the debt collection process will escalate and you may find yourself in court or with your wages garnisheed. Making payment arrangements with the help of a debt counselor will get the bill collectors off your case so they won't ruin your credit rating any further.

Again, whether or not you do owe the bill, you are still protected by law from being harassed by debt collectors and they are not allowed to call during times known to be inconvenient. Depending on where there are calling from, this might be a bit hard to avoid, given time zone differences.

Here is another tip that many people don't know: if you have sent collectors a cease and desist letter, they may not call you, with the exception of one time once they receive your letter. They do not have the right to call you at work and put your job in jeopardy either, and most definitely they are not allowed to call you while you are in the hospital or a nursing home.

For further information on your rights in this area of the law, contact a highly trained attorney who has experience in dealing with these situations. S/he will advise you on what collectors may and may not do.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Estate Planning Is Ongoing

Just because you sit down once and do some estate planning, don’t think that it is the only time you will be doing this. Estate planning is an ongoing process in order to keep up with changes in your life.

Generally speaking, the definition of estate planning is the distribution of assets after your death to people, organizations or causes with a minimum of fuss and legal ramifications. No, this is not just for the wealthy; it is for anyone with an estate, no matter how big or small. However, having said that, it's a good idea not to wait until you are older to do this.

The best time to plan out your estate distribution is when you are alive and healthy and mentally competent to do so. Waiting until you are older does not always guarantee that your mental capacity is as sharp as it once was. The other reason not to wait until later is that if an estate plan is made and the mental capabilities of the person are in question, this virtually guarantees a challenge, which is not a good thing for the beneficiaries.

Think ahead when doing estate planning; plan when you are well and "with it" and cognizant of the ramifications of your decisions. Estate planning needs to take into account just about any "glitch" that may arise, which is why this kind of asset distribution needs to be done with the assistance of a thoroughly competent estate planning attorney.

Don't know where to start with estate planning? Here are a few simple ideas, but again, it is best to discuss the whole process with a skilled attorney. Make a list of all your possessions, or at least the ones you wish to gift to others, which may include your house, land, cars, boats, cash, savings accounts, stocks, bonds, art, furniture, and/or interests in a business, etc. Just remember debts and other obligations are also a major part of your estate as well.

While you are making a list, outline who your beneficiaries are and flesh out that information with names, addresses, ages, etc. Name an executor or executrix and draft a list for them of any other agreements you may have: e.g. pre-nuptial, post-nuptial, other wills, property deeds, etc. When in doubt, consult with your estate planning attorney. Remember, this is an ongoing process and needs to be updated every time your life circumstances change.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.