•        Fraud
•        Gross mismanagement
•        Incompetence
•        Dishonesty

Despite having the ability to continue operations, you will lose absolute control over certain decisions. As the U.S. Courts point out, the court must approve of certain business actions, such as employing appraisers, attorneys or accountants for the bankruptcy case. The court must also give you the green light for either breaking a lease or entering into a lease during this time.

Some people and businesses going through bankruptcy may wish to sell assets. However, if you have filed for chapter 11, you will need the court’s approval if you play on selling real estate or other property. Additionally, if you have a secured financing situation that would allow you to borrow against the loan, you would need the court to agree to it.

Lastly, you will have to seek approval if you want to either expand or close your business. Essentially, any major decisions you would make regarding your business or its assets must be presented to the court prior to taking action. Failing to do so could undermine your bankruptcy case.

While this information may be useful, it should not be taken as legal advice.

A debt collector may be accused of illegal activity if he or she engages in the following:

•        Using threatening or profane language
•        Calling someone either before 8 a.m. or after 9 p.m.
•        Contacting a consumer at work after receiving notification in writing not to do so

The Federal Trade Commission notes that consumers can put a stop to creditor harassment. The first measure is to determine if there is a way to resolve the issue, such as paying off a debt if it is valid or discussing the available options.

Once a consumer determines that the collector should not be calling him or her, there must be a written statement instructing the organization to stop. The FTC recommends making a copy of the letter and sending the original document to the collector by certified mail. Once the company has been alerted to stop contacting someone, they may only continue if they are going to file a lawsuit or to tell a consumer that they will no longer be in touch.

Unfortunately, debt collectors are able to contact friends or family members to try to track down a consumer. However, these calls may only be placed one time in most situations.

Anyone who believes that a collection agency has violated the law is able to sue in either a federal or Illinois court. However, this may not eradicate a debt owed but rather enable a consumer to collect damages. Any issues with a collector can be reported to the Illinois Attorney General or the Consumer Financial Protection Bureau as well.

As the U.S. Courts point out, you must file a plan of reorganization along with your disclosure statement. When you submit an order of relief, you will have as long as 120 days to develop this plan. However, smaller businesses or companies with lower debt may have 100 days.

That plan should include a classification of all your secured and unsecured debts. For example, some debts may be paid in full, and others may only be partially paid. You must show which debts will be treated in which way. You should also include how those debts will be paid. Some businesses downsize in order to reduce expenses, thereby freeing up assets to make payments.

Creditors have the right to vote on whether or not they accept your reorganization plan unless you are going to pay off all debts in full. For the bankruptcy court to approve the plan, at least one class of the impaired claims – or those that will not be paid in full – must vote in favor of your plan.

There are a number of complexities associated with filing for a Chapter 11. Getting it right is key to ensuring your company has the best chance at a better financial future. For more information on this topic, please visit our page on business bankruptcy.

In May 2013, the Illinois Labor Department determined that the owner of Little Village Car Wash was paying employees less than the minimum wage. It also stated that these workers were owed back pay. In total, the owner was found to be responsible for $262,000 in pay and fines. Recently, the owner tried to settle the matter by offering $25,000, but the Illinois Attorney General’s Office rejected it.

In 2015, the owner sold the car wash for $1.5 million and it later reopened under new ownership. Recently, eight workers from the car wash were hoping that a Cook County judge would enforce the Labor Department’s findings. However, the owner filed for personal bankruptcy a day earlier.

As a result, the employees will have to go to bankruptcy court in order to try to collect any wages they are owed. According to the Chicago Tribune, they will be behind other creditors trying to collect money from the car wash’s owner. The man allegedly had property interests in several other local businesses.

This case illustrates the importance both of running a business honestly and how a bankruptcy court may prioritize debts someone owes. Anyone with questions regarding the issue should consult with an attorney.

In order to obtain credit, someone must have a solid credit history. This is often where women run into issues. The Federal Trade Commission points out that there are two major obstacles for many women trying to obtain credit. The first is that when a woman changes her name when she gets married, she runs the risk of losing her credit history. The second is that even when a couple shares a credit account, some creditors may only report that account in the husband’s name. Women who do not work or have a steady source of income could also face challenges when trying to get credit in their own name.

Fortunately, there are ways for women to resolve the issue. The first step is to contact a credit reporting agency to determine which accounts are on file. It may be necessary to point out shared accounts or note a pre-existing credit history.

The National Foundation for Credit Counseling also offers the following tips for women to establish and grow credit:

•        Start with either a secured credit card or basic credit card.
•        Obtain a credit report and score to check for any possible errors.
•        Ask someone to co-sign if necessary.
•        Avoid trying to obtain too much credit at once.

The Equal Credit Opportunity Act prohibits creditors from discriminating against people based on factors that include sex. Someone who believes that discrimination has occurred should discuss the issue with the office of the Illinois Attorney General.