Commercial Collections Blog

When a debtor files for bankruptcy, whether it be under Chapter 7 or 11 and whether it be a voluntary or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor.
This includes attempts to collect debt from the debtor by any party.  This also applies to the enforcement of liens against the debtor’s property.

This stay also relates to repossession of property.  If the creditor had repossessed property prior to the filing of the case but had disposed of it by sales, the creditor could, and the key word here is “could”, be required to make restitution of that asset to the bankruptcy estate.

Burt & Associates
Solid Experience. Strong Solutions. Since 1979
Collection Agency Price Quotes

Technorati Tags bankruptcy, burtandassociates

Anyone can obtain the latest information on any bankruptcy proceeding by calling the toll free “voice case information” phone number listed for each of the ninety-two bankruptcy courts and their respective divisions. This is an automated service that walks you through a quick one-step method to obtain such information as the debtor’s attorney’s name and phone number, the date, time and place of upcoming hearings, the latest motions made by any party to the proceeding, etc.  For more information call 877-740-7839.
Burt & Associates
Solid Experience. Strong Solutions. Since 1979

Technorati Tags bankruptcy, burt and associates

During bankruptcy, bondholders will stop receiving interest and principal payments, and stockholders will stop receiving dividends.  When the bankruptcy is concluded, if you are a bondholder, you may receive: new stock in exchange for your bonds, new bonds or a combination of stocks and bonds.  If you are a stockholder, the trustee may ask you to send back your stock in exchange for shares in the reorganized company.  The new shares may be fewer in number and be worth less.  The reorganization plan will spell out your rights as an investor and what you can expect to receive, if anything, from the company. This is way many companies prefer to filed Chapter 11 for bankruptcy protection over chapter 7 and chapter 13 and chapter 11 give business leading to bankruptcy the last chance to be successful.
For more information please contact Collection Agency B&A 877.740.7839 (toll-free)

Technorati Tags bankruptcy, BANKRUPTCY PROTECTION, collection agency

As credit and finance executives, you may first learn about a business bankruptcy in the news, like the Blockbuster’s Bankruptcy Story.  If you hold stocks or bonds in your name, you should receive information about the filing directly from the company.  If you hold stocks or bonds in street name with a broker, your broker should forward the information from the company to you.  You may be asked to vote on the reorganization plan, although you may not get the full value back on your investment.  In fact, sometimes stockbrokers don’t get to vote on the reorganization plan and often don’t get anything back.

If you are entitled to vote on the plan, you should receive from the debtor: a copy of the reorganization plan or summary; a court-approved disclosure statement that includes information that will help you make an informed judgment regarding the plan; a ballot to vote on the plan and a notice of the date of the confirmation hearing.

Even if you’re not entitled to vote, you should still get a summary of the disclosure statement and a notice about how to file objections and other information. Explore all options in Bankruptcy is one of our cartoons to view Bankruptcy Chapter 11, 7 and 13

Technorati Tags bankruptcy, BANKRUPTCY PROTECTION

Often intangible-asset valuation reports and related economic analysis are prepared as part of a corporate bankruptcy. Intangible-asset valuations often impinge on controversies concerning, among other things:

Valuation of financial assets is done using one or more of these types of models: (from Wikipedia)

1. Estimate of discounted cash flow to determine the value of future income they expect to have the assets, discounted to their present value. (Increase your cash flow, reduce your DSO,  Commercial Collection Agency)
2. The models to determine the relative value based on market prices for similar assets.
3. Certain types of financial assets provides options of pricing models (e.g., investments with embedded options such as a callable bond, put options, warrants, employee stock options, call options ) and is a model of the current complex value. The most common models of option pricing is the Black-Scholes-Merton and lattice models.

Technorati Tags bankruptcy, cash flow, Commercial Collection

When a debtor files for bankruptcy, whether it be under Chapter 7, 11, or 13, and whether it be a voluntary filing or involuntary filing, “all entities” are automatically and immediately stayed from taking any action or continuing any legal action against the debtor. This includes attempts to collect debt from the debtor by any party. This also applies to the enforcement of liens against the debtor’s property. This stay also relates to repossessions of property. Stay ahead of the situation, our Commercial Collections department can provide you with more information.

Technorati Tags bankruptcy, BANKRUPTCY PROTECTION, commerical collections

Small business bankruptcy filings increased in more than two-thirds of the nation’s large metropolitan areas during the first quarter of this year. What is a small business? One that employees less than 100 employees. It is estimated that small businesses make up 95% of all U.S. firms.

Throughout the country business bankruptcies were up just over 4% during the most recent period, with filings increasing the most, among small businesses, in the state of California.

Some parts of the country did see a decline in filings however. The metropolitan areas showing the sharpest declines in filings were Chicago, with a decline of just under 21% and the New York City metro area, where declines stood at 19%. For tips about Buying a Bankrupt Company read this article

Technorati Tags bankruptcy, BANKRUPTCY PROTECTION

One of the biggest differences between purchasing assets from distressed companies that are not operating under bankruptcy protection is that investors often do not proceed with the necessary due diligence. Many investors in these non-bankrupt companies feel the need to take quick advantage of the situation and let that guide them. Even if a buyer knows the market, taking the necessary amount of time to properly examine the distressed company’s books and records, if there are lien creditors, etc. should take precedence. If you are considering buying a company that is in bankruptcy, please consider this points:

• Find a company that has filed for protection from bankruptcy. Get financial information about the company as possible.
• Find the companies that are engage with your company prospect  and the amount of debt.   Collect information on creditors, key stakeholders and suppliers as much as possible.
• Contact an attorney who knows and is experience in bankruptcy, to make this as easy as possible. Speed and efficiency, are essential when you buy a bankrupt company.
• Get paperwork ready for the financing in order.  Write your business plan to indicate how you will create a positive balance.
• Prepare yourself and obtain the necessary documents and submit to the bankruptcy court.
• Stick with your plan, create an action plan to help solve problems that may arise from customers, suppliers and employees who remain after the purchase of the company.
• Ask your attorney to provide written documentation and an offer by the bankrupt before the Tribunal.
• Stay Focus. Secure your finances. Create an original date of payment to creditors. Making payments to suppliers, to show good faith that you have funds available. Begins to run the operation.

Debt can have many faces, please create your plan, be consistent and stay focus. Make sure you know the New bankruptcy laws for your state.

Technorati Tags bankruptcy, BANKRUPTCY PROTECTION, commerical collections

When an involuntary bankruptcy petition is filed against a company it is important to understand a few of the principal approaches the debtor may make use of to defend against that petition. The debtor’s first responsibility is to avoid having to give up any of its assets. The debtor has twenty days to file a  against the creditor or creditors filing the petition. All it takes is one  filed within that time period, to guarantee the case moves before the court. Then, as an attempt to prove the involuntary petition is not justified, the debtor may try to show the court that, despite earlier troubles, its business is improving. And of course the debtor will try to show that the creditor or creditors filing the petition are doing so in order to gain favor over other creditors.

Always remember, if an involuntary petition is dismissed against a debtor, the creditor or creditors filing the petition could be held liable for a lot more than attorneys’ fees. So tread lightly and discuss the filing of an involuntary petition against a debtor with an experienced creditor’s rights attorney before moving forward.

Technorati Tags bankruptcy