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San Jose Business & Commercial Law Blog

When your bankrupt customer transfers assets

Times are hard, but then times are always hard for someone. Your business may be going along fine, but one of your customers or clients may be struggling. The first signs of this struggle are typically late payments for goods or services your company provided. While you certainly understand what it's like to have financial difficulties, the fact is that your business depends on the timely payments of your customers.

If you have sent warnings and reminders to your delinquent customer without satisfaction, it may not have come as a surprise when that client filed for bankruptcy protection. What may have surprised you was learning that your delinquent client also transferred assets that should have been liquidated to pay you.

Understanding a Creditors' Right to File for Bankruptcy Protection

creditors rights.jpgIn the vast majority of cases, companies voluntarily file for bankruptcy protection. While bankruptcy is generally associated with providing protection to debtors, it also provides some important legal protections for creditors. Indeed, creditors even have the right to file an involuntary bankruptcy petition. By doing this, creditors may be able to force a company into bankruptcy. While this does not happen often, the right to do so is incredibly valuable for creditors. As such, it is important to discuss what you need to know about involuntary bankruptcy petitions.

What Is a Voidable Preference (Unfair Preference)?

unfair preference.jpgTypically, there are warning signs that indicate that a business will soon file for bankruptcy protection. When creditors begin to see these signs of immense financial distress, they tend to dramatically intensify their collection efforts. Of course, this makes sense. After all, creditors want to try to ensure that they are able to get paid back while there is still money available.

What can I do if I'm dealing with a breach of contract issue?

Owning a business in California or elsewhere can be very rewarding, but it can also be extremely stressful. When faced with a problem, knowing how to handle it is not always that easy or straightforward. For example, you make a certain agreement with a supplier and draw up a contract. Things go really well for a while, but then the supplier stops holding up its end of the deal.

Breach of contract issues can be tough to handle, but thankfully, this is a type of problem you do not have to resolve on your own. What can you do if your business is suffering due to a breach of contract issue? Why should you seek help with this type of matter?

Your Chapter 11 Bankruptcy Case Roadmap

Chap 11.jpgThe Chapter 11 bankruptcy process is notoriously complex. Indeed, the process can feel extremely overwhelming for those looking to reorganize their company's liabilities. Here, our San Jose business bankruptcy attorneys have put together a brief roadmap for what you can expect during your Chapter 11 bankruptcy case. More specifically, we have chronologically outlined some of the key events that will take place during the process.

How do I get paid when my customer files for bankruptcy?

One of the most frustrating things you may deal with in your business is waiting for clients or customers to pay their bills. If you have a tight budget, overdue payments may create some tense moments as you figure out how to meet your own obligations. You likely have a system in place for requesting payment, including sending out invoices, followed by reminders and, finally, warnings.

For some customers, this is enough to spur them into sending you money, even if it is a partial payment until they catch up. However, what are your rights when a customer who owes you money declares bankruptcy?

Titans of Mavericks, LLC Files for Bankruptcy Protection

bankruptcy-protection.jpgAccording to reporting from The Mercury News, Titans of Mavericks, LLC, a surfing events and lifestyle brand headquartered in San Mateo County, California, recently filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Central District of California. Court records and reports indicate that the company is attempting to use the bankruptcy process and the Chapter 11 bankruptcy protections to help ensure that its assets and intellectual property are able to be sold off to a new buyer.

Tech Startups Must Consider the Value of Their Intellectual Property

start-up.jpgBeyond being home to some of the biggest tech businesses in the world, the Bay Area remains a top location for startups. As was reported in a study from the Ewing Marion Kauffman Foundation, a nonprofit organization focused on promoting entrepreneurship, San Francisco and San Jose-Sunnyvale-Santa Clara are both ranked among the top-ten regions in the United States to start a tech company. Of course, forming a new company comes with many challenges. Here, our Silicon Valley business law attorneys focus one of the most important aspects of starting a new tech company: Intellectual property rights.

4 types of employment contracts your business may need

Whether you have just started your own business or hope to expand on your growing enterprise, you likely understand that in order to achieve your goals, you may need to create business relationships. These relationships may come in the simple form of hiring employees to help carry out duties or to more complex connections through partnerships. No matter what steps you may take to form new ties, having agreements in place can prove beneficial.

In order to ensure that you choose the right type of agreement and contract for your endeavors, you may want to find out more information on the various types of documents you can create. Additionally, understanding what terms to include in your contracts may also help your cause.

Chapter 11 Bankruptcy: How Do You Finance Post-Filing Operations?

chapter-11.jpgChapter 11 bankruptcy is also frequently referred to as a restructuring bankruptcy or as a reorganization bankruptcy. This is because the primary purpose of this type of bankruptcy is to allow the filing business to shed burdensome liabilities so that it can come out of the process on a sustainable financial path. Of course, actually getting through Chapter 11 and coming out in good shape can be difficult for any business. In fact, far too many businesses fail to ever regain stable financial footing. Ultimately, there is one specific challenge that all filing businesses face: The ability to access capital for post-filing business operations.