No company wants to consider bankruptcy, especially during a situation as tumultuous as the coronavirus outbreak. Unfortunately, bankruptcy is a reality for many businesses. Debts can quickly get out of hand when the economy contracts, especially when it does so broadly and unexpectedly. However, the unique legislative and economic environment surrounding the COVID-19 pandemic is providing small businesses with options designed to help them survive this challenging situation. Work with a commercial bankruptcy attorney like the team at Ritter Spencer PLLC to learn more about how filing for bankruptcy may help small businesses survive an economic downturn.
Many small businesses are asking about the Paycheck Protection Program, which is a large part of the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, passed by Congress and signed by the President on March 27, 2020. The Paycheck Protection Program will provide loan assistance to small businesses and is designed similar to a grant program to be paid by the government to keep small businesses operating. The Paycheck Protection Program is essentially free money for small businesses to use to stay afloat and prevent mass layoffs as a result of the COVID-19 pandemic.
As we wade through the tumultuous fallout and turmoil from the coronavirus, small businesses face seemingly insurmountable economic burdens. Commercial bankruptcy attorney, David Ritter, explains what the Small Business Reorganization Act of 2019 entails and how it can benefit small businesses in this time of crisis.
Debts build up, cash flow changes, economies rise and fall, and uncertainties increase, and entrepreneurs and business owners may need to reevaluate their financial standing accordingly. However, running into financial trouble does not necessarily mean that a company needs to close shop and declare bankruptcy. Restructuring and reorganization strategies developed by an experienced commercial bankruptcy attorney give business owners more flexibility in finding a solution with their creditors rather than declaring bankruptcy.
Although bankruptcy can seem like an intimidating subject, business owners can tackle this complex process with help from an experienced commercial bankruptcy attorney. Each chapter of bankruptcy is different and has its own unique requirements, which is why businesses should speak with competent bankruptcy counsel at the first sign of financial trouble to have the best chance of a favorable outcome in court. Ritter Spencer, a Dallas law firm that specializes in Dallas bankruptcy filings, can help your business understand Chapter 11 bankruptcy and determine if it is the right financial move for your company.
When business disputes arise, owners and managers must determine the method of resolution that is most likely to produce a compromise between the two disputing parties. Arbitration and mediation are two alternative dispute resolution (ADR) strategies that are designed to resolve conflict outside of the court system. Read below to learn more about the difference between arbitration and mediation and the advantages of each. For businesses interested in alternative dispute resolution, you can rely on Dallas commercial business litigation attorney, David Ritter, to guide your business through this complex process and find the best outcome.
Nearly 90% of all U.S. companies are involved in litigation at any given time, and cases related to contract disputes are the most active areas of litigation. The frequency of contract dispute litigation is partially due to the prevalence of generic contracts that leave businesses vulnerable to conflict with employees or partners. If you are a business owner, read below to learn why a Texas business lawyer should review your contracts to better protect your business.
As a business lawyer, I receive this question from time to time:
“I started a small business and sold investments in it to my friends or family. Now some of them want their investment back, but we are using the money for the business, and we are still building it up. They say if they don’t get the money back they will sue. I am in charge of the company and I am the only one who can run it. What do I do?”