Once a business owner decides to liquidate his or her business for financial or other reasons, there are choices to be made as to the method of liquidation, including supervised liquidations: bankruptcy (Chapter 7), an assignment for the benefit of creditors (ABC) or a receivership, and self-managed liquidations: ranging from asset or business sales to mere abandonment. Supervised liquidations transfer the responsibility for the liquidation to a third party leaving the owner without control, while a self-managed liquidation allows the owner to control the liquidation as much as possible but retaining responsibility.  Each has its own risks and benefits, including:…

As parents grow older and perhaps lose a spouse, children, other family members or even friends are often called on to help with financial and other decisions.  In more drastic instances a legal guardian may have to be appointed by a Court, often causing unneeded expense and family stress. Just adding another person on an elderly person’s accounts or property titles puts the elderly person’s estate at risk of loss, even by an honest and well-intentioned helper, and risks lawsuits about her intentions after her death.  A better alternative is to have a Power of Attorney for Property and other…

In these financially troubled times many owners are confronted with the dire choice of saving their businesses or their personal assets. Saving a business can include a reorganization. Your business can reorganize with a bankruptcy (Chapter 11) or a creditor workout. In deciding how to reorganize your business, you should consider the differences between a Chapter 11 bankruptcy and a creditor workout, including: Timing. A workout can be faster as a bankruptcy has many notice and timing requirements. Scope. While a bankruptcy involves all creditors, a workout need only involve those parties necessary to reorganize your business. Cost. Workout costs are…

One of the greatest threats to your business’ electronic data is not closing the door when offboarding employees, contractors or third parties. Not terminating their access may expose your business to hacking, phishing, ransom attacks and other cyber threats. Your offboarding process should include HR and IT, and should be routinized and documented, including: Creating and maintaining an inventory of the party’s digital life, including company and personal devices, accounts, access, administrative permissions, licenses and responsibilities. Setting a deadline for terminating all access, taking into account time or access needed to finish up or transfer work. Auditing for former employees’…

While operating your business as a corporation or other authorized business entity provides owners, officers, directors, and employees with limited liability protection, once the business is suffering from financial distress or becomes insolvent, that protection is in jeopardy, and business owners need to act with caution to preserve that protection. Some steps to protect your distressed businesses’ limited liability include: Ensuring that all representations are truthful and not misleading. Conducting regular and appropriate meetings to ensure that directors, officers, and managers are aware of the business situation. Retaining counsel to advise not only the business, but its officers and directors…

When confronted with overwhelming financial difficulties, owners often consider whether it is better to reorganize or liquidate their business. In making that decision, owners have many factors to consider, including: Nature of the Economy. Is there a place for your business in the current or future economy? Nature of the Business. Is there still a market for the business’ products and services, and does it still have profitable employees and customers? Assets. What assets does your business have and how can they be utilized or their value maximized? Liabilities. What liabilities can be shed or reduced, if any, to enable…

It is with great sadness that we report our dear friend and partner David Wentz passed away suddenly on January 4, 2021. His passing is not only devastating to his wife Tonya and their three children, but a tremendous loss to our entire community. His tireless and enthusiastic involvement with many community groups and charities will be missed, as well as the numerous charitable, service and community events he initiated. David’s commitment to his clients and his dedication to our firm and the practice of law will be greatly missed. While no one can replace David, our firm will continue…

The value of many businesses is often dependent on its employees. Retaining good employees, particularly key employees, is important to a business, as is avoiding the substantial time and cost commitment required to recruit and hire replacement employees. Some of the factors that enable you to keep top employees include: Compensation. Be competitive and consistent with the employees’ value to your business. Benefits. Packages should be updated frequently to meet employee needs and the market. Technology. Provide employees with the best technology to enhance their performance. Mobility. Acknowledge and accommodate mobility and working at home. Policies. Periodically review to align…

For aging baby boomers there are a plethora of living options from senior communities to assisted care facilities to skilled nursing homes. Each has its own benefits, costs and amenities, and are all subject to a written contract. As the services and purposes of each vary, so do their contracts, such that analysis and comparison can be difficult. While each community has its counselors (salespersons) to promote their facilities, potential residents and their families should have their own independent counsel to advise and guide them, particularly as these facilities require a substantial and sometimes lifetime financial commitment. Your attorney and…