Corporate and Banking Archives | SBEMP Attorneys LLP

Bankruptcy is a legal process that allows individuals or businesses to eliminate or restructure their debts. However, there are different types of bankruptcy, each with its own set of rules and regulations. As a bankruptcy attorney, I have seen many clients struggle with understanding the differences between Chapter 7, 11, and 13 bankruptcy. In this blog post, I will explain the pros and cons of each type of bankruptcy and how they can help individuals and businesses facing financial difficulties. So, let’s dive into the world of bankruptcy and demystify the differences between Chapter 7, 11, and 13. Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and surrounding communities.

Understanding Bankruptcy and its Types: Chapter 7, Chapter 11, Chapter 13

Bankruptcy can be a complex and confusing process, especially when it comes to understanding the different types of bankruptcy. Chapter 7, Chapter 11, and Chapter 13 are three common types of bankruptcy that individuals and businesses may encounter. Each type has its own set of rules, regulations, and benefits.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves the liquidation of assets to pay off debts. It is typically available to individuals and small businesses with limited assets and income. This type of bankruptcy can provide a fresh start by eliminating most unsecured debts, such as credit card debt and medical bills. However, it may also require the sale of certain assets.

Chapter 11 bankruptcy, on the other hand, is primarily designed for businesses, although individuals can also file for it in certain circumstances. This type of bankruptcy allows for the reorganization and restructuring of debts while the business continues to operate. It provides an opportunity to develop a plan to repay creditors over time, while also providing protection from collection actions.

Chapter 13 bankruptcy is similar to Chapter 11, but it is generally intended for individuals with a regular income and a manageable amount of debt. It allows individuals to develop a repayment plan to repay their debts over a three to five-year period. Chapter 13 can help individuals catch up on missed mortgage or car payments and can provide protection from foreclosure or repossession.

Understanding the differences between Chapter 7, Chapter 11, and Chapter 13 bankruptcy is crucial for anyone considering filing for bankruptcy. Each type has its own advantages and disadvantages, depending on the individual or business’s unique circumstances. By seeking the advice of a skilled bankruptcy attorney, you can navigate through the bankruptcy process with confidence and make informed decisions about which type of bankruptcy is best for your situation.

A Deep Dive into Chapter 7 Bankruptcy: The Pros, Cons and Everything in Between

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a crucial aspect of the bankruptcy system that individuals and businesses must understand. It offers both advantages and disadvantages, depending on your unique financial situation.

One of the most significant advantages of Chapter 7 bankruptcy is the opportunity for a fresh start. This type of bankruptcy allows for the elimination of most unsecured debts, such as credit card debt and medical bills. It can provide relief from overwhelming financial burdens and give individuals the chance to rebuild their lives.

However, it’s important to consider the potential drawbacks of Chapter 7 bankruptcy as well. One significant disadvantage is the potential sale of certain assets to repay creditors. While exemptions can protect certain assets, it’s essential to consult with a bankruptcy attorney to fully understand which assets may be at risk.

Additionally, Chapter 7 bankruptcy has certain eligibility requirements that must be met. For individuals, the means test evaluates income, expenses, and household size to determine eligibility. If your income exceeds the state’s median income, you may be required to file for Chapter 13 bankruptcy instead.

Overall, Chapter 7 bankruptcy can be a valuable tool for those in financial distress. It provides a way to eliminate unsecured debts and start fresh. However, it’s crucial to weigh the pros and cons, understand the potential asset liquidation, and consult with a knowledgeable bankruptcy attorney to determine if Chapter 7 bankruptcy is the right option for your specific circumstances.

Navigating Through Chapter 11 Bankruptcy: A Comprehensive Guide for Businesses

Chapter 11 bankruptcy is a complex and comprehensive process designed specifically for businesses facing financial difficulties. It allows businesses to reorganize their debts while continuing their operations. Navigating through Chapter 11 bankruptcy can be daunting, but with the right guidance, businesses can emerge stronger and more financially stable.

One of the key benefits of Chapter 11 bankruptcy is the ability to develop a plan to repay creditors over time. This plan, known as a reorganization plan, outlines how the business will restructure its debts and repay them in a way that is feasible and sustainable. It allows the business to regain control of its financial affairs and work towards a successful future.

However, it’s important to understand that Chapter 11 bankruptcy comes with certain challenges as well. The process can be time-consuming and expensive, requiring extensive documentation and legal expertise. The business must also seek approval from creditors for its reorganization plan, which can be a complex and often contentious process.

During Chapter 11 bankruptcy, the business must continue to operate and generate revenue to meet its ongoing expenses and fulfill its obligations under the reorganization plan. This can be a delicate balancing act, requiring careful management of resources and a clear understanding of the business’s financial capabilities.

To navigate through Chapter 11 bankruptcy successfully, it is essential for businesses to seek the guidance of a knowledgeable bankruptcy attorney. An experienced attorney can help the business develop a comprehensive reorganization plan, negotiate with creditors, and ensure compliance with all legal requirements.

Overall, Chapter 11 bankruptcy offers businesses an opportunity to restructure and repay their debts while continuing their operations. With the right guidance and careful planning, businesses can successfully navigate through Chapter 11 bankruptcy and emerge on the path to financial recovery and success.

The Reality of Chapter 13 Bankruptcy: Unpacking the Benefits and Drawbacks

Chapter 13 bankruptcy is a unique option for individuals facing financial difficulties. It offers a range of benefits, but it’s essential to consider the potential drawbacks as well. Let’s unpack the reality of Chapter 13 bankruptcy.

One significant benefit of Chapter 13 bankruptcy is the opportunity to catch up on missed mortgage or car payments. This type of bankruptcy allows individuals to develop a repayment plan that spans three to five years, making it more manageable to pay off debts while keeping their assets. Chapter 13 also provides protection from foreclosure or repossession, giving individuals the chance to keep their homes and vehicles.

Another advantage of Chapter 13 bankruptcy is the ability to consolidate debts and reduce monthly payments. Under the repayment plan, individuals make a single monthly payment to the bankruptcy trustee, who then distributes it to creditors. This streamlined approach can alleviate the stress of juggling multiple payments and can make it easier to budget and manage finances.

However, it’s important to note that Chapter 13 bankruptcy also has its drawbacks. One key consideration is the duration of the repayment plan, which can range from three to five years. This can be a lengthy commitment, requiring individuals to adhere to the plan and make consistent payments for an extended period.

Additionally, Chapter 13 bankruptcy requires individuals to have a regular income and a manageable amount of debt. If an individual’s income is too high or their debt is too large, they may not qualify for Chapter 13 and may need to explore alternative options.

Navigating Chapter 13 bankruptcy successfully requires careful planning and expert guidance. It’s crucial to consult with a skilled bankruptcy attorney who can help you assess your eligibility, develop a viable repayment plan, and guide you through the entire process.

Choosing the Right Path: How to Determine Which Bankruptcy Option is Best For You

Navigating the world of bankruptcy can be overwhelming, but understanding your options is crucial in making the best decision for your financial future. So, how do you determine which bankruptcy option is right for you? Here are some key factors to consider.

First, assess your financial situation. Look at your income, assets, and debts. Are you an individual with limited income and few assets? Chapter 7 bankruptcy may be a suitable option for you. On the other hand, if you own a business and want to reorganize your debts while continuing operations, Chapter 11 bankruptcy might be the better choice. For individuals with a regular income and manageable debt, Chapter 13 bankruptcy allows you to develop a repayment plan over a three to five-year period.

Next, think about your long-term goals. Are you looking for a fresh start and want to eliminate most of your unsecured debts? Chapter 7 bankruptcy could be the way to go. If you want to save your business and develop a plan to repay creditors, Chapter 11 may be the best fit. And if you want to catch up on missed payments and keep your assets, Chapter 13 might be the right option for you.

Finally, seek professional advice. Consulting with a skilled bankruptcy attorney is essential in making an informed decision. They can evaluate your unique circumstances, explain the benefits and drawbacks of each option, and guide you through the entire process.

Ultimately, choosing the right bankruptcy option requires careful consideration of your financial situation, goals, and expert advice. By taking the time to assess your needs and seeking professional guidance, you can make the best decision to achieve financial stability and a brighter future.

Have any legal questions? Contact the Attorneys at SBEMP Law Firm:

For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.

SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.

DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.

You should never lose sight of a primary fact that you are running a business. This is regardless of the relationship you have with your employees. Don’t assume that employees have all the rights. Employers have certain rights too. You should consider retaining the services of an employment attorney automatically when you get people on your payroll. Your attorney will keep their eye on those matters that the HR team is not equipped to handle.

Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm, who have been through the legal trenches before, provide professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and surrounding locations.

Here are a few major ways in which an employment or a corporate attorney can be useful to you:

Wrongful Termination and Other Lawsuits

Employment attorney can be very useful if an employee files a legal suit against you. Wrongful termination suits are the most common lawsuits against employers. Based on this, retaliation and discrimination suits are pretty common too. You may have had every reason to lay someone off or fire them. You may still need to back this up in court. Having an experienced and capable attorney can prove to be useful.

Severance Packages

Layoffs are an unfortunate reality of every business. You would still want to leave your workers with adequate severance packages. There are several laws in place regarding severance packages. You may want to create a package allowing them to get a one-time payout which gives them enough cushion find another great landing place.

Your attorney will be helpful when you need to create these severance packages. This will ensure that your employees are happy and you can avoid long-term litigation. Having an attorney help the HR team draw up severance packages will also ensure that everything is done legally.

Workplace Policy

You need to take adequate steps to be on the right side of law when it comes to your business and workplace. Experienced and capable lawyers can make this happen. They will help you create legally sound policies for everything from sick leaves and vacation days to holiday bonuses. You will also be confident that the policies are ethically sound when drafted by attorneys.

Contracts and Benefits Packages

It’s recommended to have an attorney present when hiring an employee. They can put together offers of employment and contracts that are legally sound. Your attorneys will also let you know the steps you can take from a benefits standpoint. Such packages shape the future of your employees at the workplace. Having another set of eyes on this legal paperwork can only help.

Workers Compensation Claims

Attorneys can do your due diligence in regards to workers compensation claims. You want to make sure that you are on the right side of the case. The attorney will investigate individual employee situation to ensure it is legitimate. They will make sure that you are not overpaying. You can protect your best interests by having an attorney by your side.

Lawyers at the SBEMP law firm serve clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.

Have any legal questions? Contact the Attorneys at SBEMP Law Firm:

For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.

A lawsuit with many plaintiffs is known as a class action lawsuit. In this type of case, multiple people accuse the defendant of wrongdoing. The complaints of the plaintiffs are similar. The courts allow all the plaintiffs to come together to litigate their issues.

Accomplished attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and surrounding locations.

Why do Class Action Cases Exist?

To conserve resources, courts permit litigants to join forces and bring their cases as one class action. Instead of every plaintiff hiring individual lawyers to bring an action, the plaintiffs can all work with one lawyer or a team of lawyers who understand the issues on behalf of everyone.

In a class action case, individual attorneys for each plaintiff do not have to spend time understanding the specifics of the case. There is no duplicity of work, and it allows all the plaintiffs to work with a single legal team to save cumulative time and effort.

It is also helpful for the defendants to group cases into a class action. The defendant will only have to respond to a single set of lawsuits instead of multiple lawsuits (which can run into the thousands) all over the country and at different times.

The production of one set of discovery and appearing for one set of court dates can help the defendant conserve resources. They can also evaluate all cases at one time and make decisions on accepting or extending a settlement offer.

Many Plaintiffs Necessary

There must be many plaintiffs for a case to be determined a class action case. A majority of class action cases have dozens of plaintiffs or more. There must be a sufficient number of plaintiffs with similar claims to make it feasible to combine these cases in order to resolve them.

Plaintiffs must have Common Issues

The plaintiffs must have common issues for a class action case. For instance, in case the plaintiffs have all had similar complications following the use of a specific medication, they may be an ideal group for class action. While their situations may vary slightly, the underlying problems are similar.

A Class Action must Address Class Members’ Needs

Class certification is inappropriate for a case unless it can properly represent the interests of all the plaintiffs. Primarily, the circumstances should be fair for all plaintiffs. Furthermore, the courts evaluate if certifying the class will facilitate the convenient administration of justice.

Who Practices Class Action Law?

Class action cases are civil cases, and more specifically, personal injury cases. Lawyers focusing on class action cases practice tort law. A majority of lawyers do not practice only class action law. In case a lawyer takes up class action cases, they likely work on such cases as a part of a broader civil litigation practice.

Most class action cases are handled by big law practices as they require substantial resources. These practices have the resources and personnel to manage significant amounts of discovery and client outreach.

The committed team of lawyers at the SBEMP law firm serve clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.

SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage), CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.

Corporate law encompasses the body of rules, regulations, laws, and practices pertaining to the incorporation and operation of corporate entities.

It is the body of law that governs legal entities that are in existence to conduct business. These laws set forth the rights and duties of all individuals involved in the formation, ownership, operation, and management of a corporation.

SBEMP (Slovak, Baron, Empey, Murphy, & Pinkney) law firm, led by experienced lawyers, provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and surrounding locations.

What Constitutes a Corporation?

A legal entity that is in existence to conduct business is known as a corporation. This legal entity is distinct from the people who create it. Just like a person, a corporation can also carry out business in its own name. The ownership of a part of the corporation by a person limits their liability to their ownership in such a corporation. They cannot lose more than they have invested in the corporation.

Primary Characteristics of Corporate Law

Corporate law is based on the following five principles:

Legal Personality

Owners of a corporation pool their resources into a distinct entity. This entity can utilize the assets as well as sell them. It is not easy for creditors to re-gain these assets. Rather, they incorporate their own separate entity that acts on its own accord.

Limited Liability

In case a corporation faces a lawsuit, only the assets of the corporation are at-risk. The plaintiff cannot bring the personal assets of the owners of the corporation into the dispute. This limited liability of the corporation’s owners allows them to assume risks and diversify their investments.

Transferable Shares

A corporation does not have to cease to exist merely if an owner no longer wants to retain a share in the corporation. A unique feature of a corporation is that its owners can transfer their shares without the same challenges that accompany the transfer of ownership of a partnership. They may be a limitation on the method of transfer of ownership. However, the ability to transfer ownership enables the corporation to continue to exist even when the owners want to exit.

Delegated Management

There is a defined structure which guides how corporations conduct their activities. There is a board of directors as well as officers. The decision-making authority is shared and split between these groups. Board members are responsible for hiring and monitoring officers. They also evaluate their major decisions. The shareholders of a corporation will elect the board.

This defined structure of leadership allows parties that conduct business with the corporation to be assured that the actions of the board of directors and officers are legally binding on the corporate entity.

Investor Ownership

While owners do have a say in the decision-making of the corporation, they do not operate the company directly. Furthermore, investors are entitled to the profits of the corporation. The owner usually has the authority to make decisions and a share of profits according to their ownership interest. Owners usually vote to elect the board.

SBEMP law firm, led by highly skilled attorneys, serves clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.

For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.

SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage), CA; Costa Mesa (Orange County), CA; San Diego, CA; Princeston, NJ; and New York, NY.

Choosing the Best Law Firm For You

Just like any other product or service, you should conduct diligent research prior to choosing legal services.

After acquiring referrals of various lawyers with expertise in the required practice area, you should assess each firm meticulously. Following are some useful steps to help you identify the right lawyer for your legal requirements.

SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and surrounding locations.

Schedule Candidate Interviews

Interviewing with a lawyer is a very effective way to evaluate their legal abilities. A majority of legal professionals offer an initial consultation for up to an hour at no charge. Some vital questions to ask the legal counselor during this meeting are as follows:

What expertise do you have in the required area of practice?
How long have you been practicing for?
What is your track record of successful cases?
What percentage of your caseload is similar to my legal matter?
Do you possess any specialized skills or certifications?
What are your fees and fee structure?
Do you have malpractice insurance? If yes, what is the amount?
Will anyone else be working on my case? If yes, what are their fees?
Do you outsource any important legal tasks?
In addition to your fees, what additional expenses may be incurred (filing fees, postage, copy fees, etc.)?
What is the billing cycle?
Can you offer references from previous clients?
Do you have a written representation agreement or fee agreement?
How will you inform me of the developments in my case?

Bear in mind that higher fees do not always translate into working with a more capable attorney. Conversely, a low fee may not necessarily indicate inexperience, inability, or other problems.

Following the meeting with the attorney, you should seek answers to the below mentioned questions:

Are the credentials and experience of the attorney in line with my legal requirements?
Does the lawyer offer honest and prompt answers to my questions?
Is this attorney someone whom I would feel at ease working with?
Am I sure that this lawyer has the qualifications and skills to handle my case?
Am I comfortable with this attorney’s fees as well as the fee structure?
Am I comfortable with the representation agreement and/or fee agreement terms?

Consult Martindale-Hubbell Law Directory

Martindale-Hubbell is an excellent resource for in-depth information regarding a law practice and its attorneys. This source can be located digitally at Martindale.com and your neighborhood public and law libraries.

Tour the Attorney’s Law Office

A lot of things can be obvious about an attorney from their law office. You can request a brief office tour beyond the conference area or office where you consulted with the attorney. Things to note are whether the office environment is welcoming and friendly, the systems are effective and organized and how approachable and dedicated are the attorneys and other staff members.

For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.

One of the most important binding documents that makes up a Limited Liability Company (LLC) is an operating agreement. It will outline the rules by which the LLC will operate as the financial and working relationship between each member is defined. (more…)

When it comes to nonprofit corporations, trust is key. And, as a member of the board of directors, it is your responsibility to assure the public that their hard-earned money is being handled by a responsible company.

(more…)

If you plan on growing your business, it’s important to get it incorporated so that it’s officially registered and can have taxes filed properly. To do that, you’ll need to file articles of incorporation, which will give the state the appropriate information on the company. California has their own laws on what you will need to complete the appropriate documents correctly, but generally the following items are what you’ll need.

Your Business Name and Registered Agent

Getting your company incorporated requires having a name usually not already taken, and in some cases, it will have the “Inc.” tacked on the end of it. You also need to explain what your business purpose is, which could be your mission statement, but in some cases the state may want more details. You also need to make sure you have your incorporator’s name listed and the registered agent assisting you with filing. That agent must have a physical address.

Governance And Financial Information

Typically, you will need to have company executives listed on the articles of incorporation, which include members of your board of directors and officers like the CEO and COO. You also need information on how many shares of stock you will be authorizing, what the anticipated market value of those shares will be, and whether you’ll be issuing both common and preferred shares. You don’t necessarily have to disclose the actual sale price of the shares.

Getting the articles of incorporation prepared should be done in the presence of an attorney to ensure you file correctly. If you’re ready to get your company incorporated in California, you should visit our Palm Springs corporate law firm as soon as possible.

What Is A Good Contract?

A perfectly prepared contract covers many details, both minor and major. A contract is more than a list of these details, but also includes the business processes and decisions. It is important that you document your processes to the respective transaction.

What Are The Risks Of A Poorly Written Contract

An improperly created contract can make your company vulnerable in the event of an upset client or could also mess up your relationship with vendors. The more potential vulnerability there is, the more of a priority it is to consult an attorney to help with your contract.

What Can Make Your Contracts Better?

An attorney can advise you on contract issues, or even create a good contract system for you. They can provide updated contracts and policies that will be practical and help you get the necessary signatures. Their work will help your business negotiations with organization, and they can assist with awareness of any potential risk probabilities.

Where To Find Knowledgeable Legal Advice?

SBEMP has attorneys that are experienced in various types of contracts. They have been doing this type of work in the Palm Springs area with clients from various business industries. They understand how to use contracts, clauses, procedures, and systems to reach an end of profit and build relationships between businesses. Whether you need a review, draft, consultation, audit, training, or something custom created, contact SBEMP’s Palm Springs corporate law firm for a low risk, uniform contract system.

Buyouts and LBOs tend to come from one of three groups; current management (of the company in question), another company, or a private, non-public equity firm.

(more…)