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Corporate Bankruptcy Ethics

August 12, 2010 By admin 4 Comments

... Your Home With A Bankruptcy

The Pros and Cons of Corporate Bank Loans

Author: William Lee

 

The first thing that comes into a prospective business owner’s mind when sourcing for money to start up their business is to go to the bank. It’s convenient, safe and regulated, why would you go anywhere else?

But people must keep in mind that for most things in life, there are its pros and cons. Before you jump on the corporate banking business loan bandwagon, take a while to consider your options and make an informed decision.

The Advantages

Convenience and multiple loan options – Besides a standard business loan, banks can provide a selection of loan choices for you to consider. Even non-commercial loans that are able to be used for business purposes including personal and home-equity. What’s more is that there’s probably a commercial bank no more than 10 minutes from your house.

The bank has little to no control over how you spend the money – If the bank reviews your business plan and approves the loan to you, the money is essentially yours to do with as you wish. Since you are already in agreement with the bank on the interest rate for them to earn from you, they have little to no say what you do with the money. If you decide to use it all to travel the world instead of starting a business, well that’s your choice (although not a very good one).

This is a non profit sharing arrangement – Unlike business partners, venture capitalist funds or any other sources of capital, the bank is not entitled to any of your profits. Besides repayment of the loan plus interest, you do not need to split your profits between any other investors.

Interest rates may be low – The interest rates the bank can offer may be lower than other sources of financing such as credit cards and finance companies. Although not as low as borrowing from friends and family of course.

Commercial loans payments are often tax-deductible – You will need to check with your local tax department, but you may be able to get tax deductions related to the interest payments you are making on your business loan.

The Disadvantages

It may be hard to get a loan – Banks will probably require you to show them your business plan and convince them that your business has a chance of making a profit. If they don’t believe in your product/ service they could easily refuse you the loan. This is to ensure that when they loan out money, they are sure to get it back. Also, standard business loans are often limited to pre-existing businesses that have a financial history of success.

Application for a loan can be lengthy – Bank loans may require more information and a longer review process compared to other types of sources.

Collateral is usually required - A commercial institute usually requires collateral on the business loan, although this would probably not be required from other types of lenders. This may be quite risky if the collateral that you have to put up is your house or other family possessions.

You may not get all you ask for – Unlike a housing loan, which barely needs any persuasion to qualify for, you may not be able to get 80-100% funding for your business. The return on housing loans is so much better for banks that for a business loan, unless it’s quite small, you may only receive 75% of what you ask for. This varies from bank to bank.

So weigh your options before taking a corporate loan from a financial institution such as a bank, it may actually be better for you to find other sources of funding. Friends and family are always a good place to start. Just consider the pros and cons as laid out above and it will help you to come to an informed decision.

Article Source: http://www.articlesbase.com/small-business-articles/the-pros-and-cons-of-corporate-bank-loans-527519.html

About the Author

William Lee gives business advice and tips to those who wish to know how to start a business, but just never knew where to look.

From his blog you can follow the link to The Business Suit, an online forum for like minded business people to share their business experiences and advice on a range of topics.

This article is copyrighted, all rights reserved, and it may be used only if kept entirely intact with the author's name and URL. http://xanydude.blogspot.com



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File Bankruptcy Online Colorado

August 12, 2010 By admin 2 Comments
File Chapter 13 Bankruptcy ...

The New Bankruptcy Law: Information You Require To Know Before You File

Author: Dominick Barker

The new bankruptcy law is in effect, and the climate has drastically changed for people who are considering bankruptcy. In this article we will touch on some of the details of the new law, and explain exactly how these new changes will affect you.

First, let's touch on the new counseling requirements. According to the new law, you must complete credit counseling with an agency approved by the United States Trustee's office before you can file for bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to decide whether you need to file for bankruptcy, or if an informal payment plan would be a better alternative for your situation. The counseling is mandatory for everyone, even for people who know for certain that a repayment plan is not what they want.

However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.

But if you are given a plan, you will have to present the plan to the court with a certificate showing that you attended the counseling before you can file for bankruptcy. Once your bankruptcy case is over, you will have to attend another counseling session focused on learning personal financial management skills to complete your bankruptcy and erase your debts.

Another major change that comes with the new law effects many people who want to file chapter 7 bankruptcy. Under the old law, most people filing could choose between Chapter 7 and Chapter 13, and most people chose Chapter 7. Because of the new law, many filers with higher incomes will be prohibited from using Chapter 7.

The first step in determining whether or not you can file for Chapter 7 is to compare your current monthly income to the median income for a family of your size in the state you live in. In the context of the new law, your current monthly income is not your income at the time you file, but your average income over the last six months before you file.

Once you have determined your income, measure it against the median income in your state. If your income is equal to or less than the median, you can file for Chapter 7. If it is more than the median, you must pass a requirement of the new law called the means test. The means test requires you to determine your amount of "disposable income" by subtracting different variables from your current monthly income.

If your current monthly income after subtracting these amounts is under 0, you pass the means test, and will be able to file for Chapter 7. If you income is more than 6.66, you will be prohibited from using Chapter 7. Those in the middle of these incomes will be able to file for chapter 7, but will be required to still pay a percentage of their debt.

Yet another important change caused by the new law is that lawyers may be harder to find, and possibly more expensive. The new law has added many complex requirements to the process of filing for bankruptcy that will make it more time consuming for lawyers to represent their clients in bankruptcy cases. The end result being that attorney fees for representation will increase. Also, the amount of time that lawyers must put into the new regulations has increased and it is likely that it may be harder to find a lawyer that solely specialized in bankruptcy in the future. Many experts are predicting that the stress of these new requirements may drive some bankruptcy lawyers out of the field completely.

Now that you know many of the changes the new bankruptcy laws hold for your situation, be aware and file with care.

Article Source: http://www.articlesbase.com/finance-articles/the-new-bankruptcy-law-information-you-require-to-know-before-you-file-1945737.html

About the Author

Want to find out about tingling in fingertips and tingling tongue? Get tips from the Tingling Hands And Feet website.


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Business Bankruptcy Attorney Ny

August 3, 2010 By admin Leave a Comment
Kinzer Michael Attorney At ...

Getting a Tax Id Number for a Business Entity

Author: SD Lawyer

Hey, we all remember the jury that awarded three million dollars to the women who said her McDonalds coffee was to hot. If that doesn’t scare you, nothing will.

Fortunately, the law also gives you some ammunition to fight back against potential lawsuits. The ammunition comes in the form of business entities that protect you from personal liability for the debts of the business. These debts include lawsuit judgments.

The two most common business entities used for this purpose are the corporation and limited liability company. Although each is unique, they create a shield between your personal assets and the business. This occurs because the entities are treated as though they are a unique person. If they get into trouble, you are not liable. For example, buying shares in Google, a publicly traded corporation, does not mean you are on the hook if Google loses a lawsuit.

Obviously, the liability protection of a business entity is a good thing. That being said, you have to treat it as a separate individual to keep the shield in place. In this case, we are talking about getting a tax identification number for it. Of course, the IRS doesn’t call it that. Instead, it is called an Employee Identification Number or EIN. So, how do you get one?

The first thing to do is download the SS-4 form off the IRS website. Fill it out so you have all the information necessary. You can mail it in, but it takes forever to get a response. Assuming you want things to move quicker, the easier step is to call the IRS at 800-829-4933. They will ask you for information off the form and give you the EIN there and then. Alternatively, you can go to their site and do the application online. Just search for “EIN” and then fill out the form. Importantly, write down the EIN when it appears as the IRS does not send you a confirming email.

Getting an EIN for a business entity is fairly simple. Just make sure you need one. Single owner LLCs often do not. If you have any doubts, hire an accountant to do it. It will cost a couple of bucks, but is worth getting it right.

Article Source: http://www.articlesbase.com/law-articles/getting-a-tax-id-number-for-a-business-entity-242248.html

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For More Article Visit :: http://www.thearticleinsiders.com/



Filed Under: Bankruptcy information Tagged With: , , , , , , , ,

Bankruptcy Law Firms Atlanta Ga

August 1, 2010 By admin Leave a Comment
Atlanta Lawyers, Atlanta, GA ...

The Atlanta, Georgia Law Offices Of Attorney Britt

Author: Britt Gary

There are a lot of lawyers that are providing their services today and almost all of them seem like a good choice.  However, I can assure you that not all the things that look good are really good, and this goes for many Atlanta, Georgia lawyers-attorneys.  When you are searching for a lawyer or attorney, make sure that you check their experience, expertise, and professional qualifications.  That is the best way to see if the lawyer is suitable to get the job done for you.  At the Atlanta, Georgia law firm of AttorneyBritt we include the complete resume, work history, and qualifications of our lawyers-attorneys on our web site.  For example, at the Atlanta, Georgia law firm of AttorneyBritt we provide the complete resume and work history for our founder, Gary L. Britt, CPA, J.D.

  • Before he started his legal career, Mr. Britt worked as a certified public accountant between 1974 and 1985 for several of the largest and most prestigious public accounting and holding companies in the USA.
  • Between 1985 and 1995, Mr. Britt was partner in Douglas and Britt, Houston Texas. There he became an expert in all types of business contract and litigation matters, as well as financial and estate planning for business owners and high wealth individuals.
  • During the period between 1995 and 2001, Mr. Britt was vice president and general counsel in The Clawson Group, Atlanta, Georgia.  There he was responsible for all the legal aspects of this privately owned conglomerate, as well as all banking and treasury relationships and contracts.
  • Between 2002 and 2004, Mr. Britt was general counsel of Stafford Development Company, Tifton, Georgia.  There he was in charge of all legal matters for this multifaceted and diverse conglomerate of companies.
  • During the period between 2004 and 2008, Mr. Britt was general counsel for General Counsel Group, Atlanta, Georgia.  During that period, Mr. Britt functioned as General Counsel for two principal groups of companies in Atlanta and Savannah, Georgia.
  • In 2008, Mr. Britt founded his own Atlanta, Georgia law firm, AttorneyBritt.  AttorneyBritt - Lawyer Attorney CPA - Professional solutions for litigation, estate planning, business law, asset protection, wills, trusts, probate, contracts and agreements.

Let the Atlanta, Georgia law firm of AttorneyBritt help you, and concentrate your time on the more important aspects of your business and LIFE.  The Atlanta, Georgia law firm of AttorneyBritt will help you make your business grow while protecting your assets and peace of mind.  When you choose a lawyer-attorney in Atlanta, Georgia, you owe it to yourself to contact the law firm of AttorneyBritt, Gary L. Britt, CPA, J.D.

Article Source: http://www.articlesbase.com/law-articles/the-atlanta-georgia-law-offices-of-attorney-britt-2193424.html

About the Author

AttorneyBritt – Gary L. Britt, CPA, J.D. – Attorney At Law - Professional solutions for litigation, estate planning, business law, asset protection, wills, trusts, probate, contracts and agreements.AttorneyBritt



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Bankruptcy Debt Reporting

July 30, 2010 By admin 10 Comments
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Should You Declare Bankruptcy?

Author: Raul Levine

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, it is a legal procedure that offers a fresh start for people who can't satisfy their debts. People who follow the bankruptcy rules receive a discharge - a court order that says they don't have to repay certain debts.

The consequences of bankruptcy are significant and require careful consideration. Other factors to think about: Effective October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows you, if you have a steady income, to keep property, such as a mortgaged house or car, that you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7, known as straight bankruptcy, involves the sale of all assets that are not exempt. Exempt property may include cars, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official - a trustee - or turned over to your creditors. The new bankruptcy laws have changed the time period during which you can receive a discharge through Chapter 7. You now must wait eight years after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary by state. Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or security lien on it.

Another major change to the bankruptcy laws involves certain hurdles that you must clear before even filing for bankruptcy, no matter what the chapter. You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. You can find a state-by-state list of government-approved organizations at the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a "means test." This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program.

Article Source: http://www.articlesbase.com/finance-articles/should-you-declare-bankruptcy-1430389.html

About the Author

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