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Showing posts with the label bankruptcy

FTC Requests Bankruptcy Court Take Steps to Protect RadioShack Consumers’ Personal Information

In a letter to the court-appointed consumer privacy ombudsman in the bankruptcy case of the electronics retailer RadioShack, Federal Trade Commission Consumer Protection Director Jessica Rich recommended conditions the court could place on the sale of consumers’ personal information to protect their privacy. According to the letter, substantial amounts of personal data collected by RadioShack, including consumers’ names, addresses, e-mail addresses, and purchase histories, are among the assets being put up for auction to settle the bankruptcy. Documents indicate information from tens of millions of consumers may be among the assets for sale. In the letter, Rich points to the extensive privacy promises that RadioShack made to consumers both online and in its stores – including promises not to sell consumers’ information or the company’s mailing lists.  She notes the  FTC’s previous intervention in the bankruptcy of online retailer Toysmart , which sought to sell its customers’ pe

Bankruptcy statistics

See the Death/Closing of Enterprises statistics from Census 1977-2011.

Bankruptcies and Business Failures are lower this year

From D&B: Business bankruptcies and failures continued to decline this year ; however, the pace was slower than in Q4 2011. Overall, business bankruptcies and failures are lower this year in the U.S. and around the world. This is a confidence booster for many businesses and the growth in the small business segment - firms with fewer than 500 employees - is another driver of confidence for the U.S. economy.

Does the Bankruptcy Code Provide a Fresh Start To Entrepreneurs?

The U. S. bankruptcy system is designed to recover funds for creditors while giving bankrupt small businesses an opportunity for a “fresh start.” While a fresh start is a goal of the system, little analysis has been done to evaluate the ability of small firms to reset and thrive after bankruptcy. This paper attempts to fill that gap. The research finds that 2.6 percent of firms filed for bankruptcy within the previous seven years, that they are comparable to other firms in terms of cash flow and firm size, and that they have a 24 percent higher likelihood of being denied a loan and are charged interest rates that are 1 percent higher than those charged other firms. The research summary can be found HERE . Should you need further information, please feel free to contact Brian Headd at (202) 205-6533 or advocacy@sba.gov.

Bankruptcy stats

You can get all the bankruptcy stats you need from the US Bankruptcy Court site.

Bankruptcy courts

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Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. But if you were trying to figure out which court had jurisdiction over which county in states that have more than one court, such as New York, which has four, you won't find the info in the bankruptcy section, only an annoyingly overbroad map. Instead, look in the general federal district court section where you'll find this link for all counties in a district. The Eastern is Long Island plus three NYC boroughs. The Southern is Manhattan, Bronx up to Dutchess, but not Ulster County. The Northern extends due north of there. The Western is the, er, western part of the state.

Entrepreneurship and the Barrier to Exit:

Here's a section of the business cycle that may not be well understood. The study "Entrepreneurship and the Barrier to Exit: How Does an Entrepreneur-Friendly Bankruptcy Law Affect Entrepreneurship Development at a Societal Level?" received the SBA's Office of Advocacy Best Paper Award at the 2008 Babson College Entrepreneurship Research Conference. "The authors examine the relationship between bankruptcy law and the value-creating activities associated with risk-taking behaviors by entrepreneurial firms. They argue that an entrepreneur-friendly bankruptcy law may paradoxically increase the number of corporate bankruptcies, which may be indicative of a vibrant entrepreneurial economy." A copy of the report is located here and the research summary can be found here . Should you need further information, please feel free to contact Jules Lichtenstein at (202) 205-6533 or advocacy@sba.gov.

New Reports from SBA's Office of Advocacy

If you get "The Small Business Advocate" newsletter from SBA's Office of Advocacy (and you've actually read it), then this won't be news to you. Their March 2008 issue features an article called "Trio of New Advocacy Reports". They don't always pertain to the day-to-day activities with our clients, but I find them interesting nonetheless. Here's what they mention: 1) " The Tax Debts of Small Business Owners in Bankruptcy " 2) " Rural and Urban Establishment Births and Deaths " 3) " Small Business and Micro Business Lending in the U.S., 2005-2006 " Regarding #3, here's one person's take on the real impact of microlending, at least internationally.

Entrepreneurship Vs. The Tax Burden

Each year, the Office of Advocacy of the U.S. Small Business Administration is tasked with documenting the importance of entrepreneurship to the American economy and with highlighting policy issues of relevance to small firms. This report summarizes the publications produced by the Office of Advocacy’s Office of Economic Research in 2007. A copy of this report can be obtained here (PDF) . Should you need further information, please feel free to contact Chad Moutray at (202)205-6533 or advocacy@sba.gov. Yet, this study (PDF) documents the pervasiveness and the magnitude of the tax burden among small business owners in bankruptcy. The data suggest that the tax burden is more pervasive among small business owners in bankruptcy than among consumer petitioners. While less than one-quarter of all consumers in the bankruptcy sample reported tax debts, more than half of individual small business owners reported owing some tax debts. The research summary can be found here (PDF) . Should you ne

Filing for Bankruptcy Without an Attorney

Not to say it is recommended, but I still like to see sites that help people help themselves, and this one is offered by the US Courts: How to handle your own bankruptcy. Even if an attorney were consulted, at least it offers a clear idea of what needs to happen. Bankruptcy Basics runs through the chapters and what they mean and includes a glossary. There is also a page of Bankruptcy Resources . FYI: Bankruptcy Filings Down for Fiscal Year 2007, Up for Quarter Bankruptcy 'tweak' could save 600,000 homes Consumer group pushes for change to bankruptcy law; others worry about negative impact on mortgage-debt markets. By Jeanne Sahadi, CNNMoney.com senior writer October 1 2007 Changes to Bankruptcy Rules (Effective 12/1/07) By Brett Weiss, Maryland Bankruptcy Attorney on Dec 15, 2007