Why Chapter 11 Bankruptcy Remains to be an Attractive Option for Many Businesses Facing Significant Financial Problems

Insolvency, or the inability to pay debts, places any business at risk and though no firm will want lose more money than what it earns, when debts reach an amount which a firm can no longer pay, then it will have to find ways to immediately to save itself from such debt without needing to cease operations.

The good new is, there are actually a number of legal options that a business can pursue to get out of debt to regain solid financial footing; one of these options is bankruptcy.

The U.S. Bankruptcy Code offers individuals, families and companies several paths which will help them rise up from a debt crisis. These paths are contained in various chapters of the Bankruptcy Code and each chapter is specifically calculated to address the unique tight spot a debtor is suffering from.

Businesses, particularly, have three bankruptcy chapter options to choose from:

  • Chapter 7, which is a liquidation bankruptcy. This chapter requires that a business stops operation and all its available assets surrendered to a court-appointed trustee for liquidation. The earnings from the sale will be distributed to creditors to pay the firm’s debts.
  • Chapter 13, which is reorganization or restructuring bankruptcy. It is designed for sole proprietorship business structures, though it may also be filed by individuals who have either an unsecured debt that is less than $383,175, or a secured debt that is below $1,149,525. These debt limits are set by the federal government, which has complete jurisdiction over bankruptcy matters. In this chapter, the court will require a restructuring of the debt payment scheme (a three-year payment plan but which may be extended to five years upon the court’s approval) – after which all debts should already have been fully paid; and,
  • Chapter 11. Though this bankruptcy chapter is the most expensive, time-consuming, complex and riskiest, it the only option for sole proprietors, whose debts exceed the limit set in Chapter 13, as well as for small businesses structured as corporations, limited liability companies or partnerships that owe overwhelming debts, but would not want to cease operations (many well-established corporations, like United Airlines, K-Mart and General Motors have sought protection under this chapter).

Chapter 11, specifically, allows debtors to restructure their finances through a bankruptcy court-approved reorganization plan. This restructuring scheme is intended not only to keep a business alive, operational and profitable (under the court’s close monitoring), but also to ensure that creditors are paid the amount owed to them. Debtors also have the option to sell a few or all of their assets to downsize their business if they need to.

According to a Raleigh Chapter 11 bankruptcy attorney, despite the risks, many businesses facing significant financial problems see Chapter 11 bankruptcy an attractive option due to its benefits, which include:

  • The ability to keep a business running during the bankruptcy process;
  • Protection against creditor harassment;
  • Possibility of obtaining loans at favorable rates; and,
  • Litigation against the debtor is put on hold.

The Lowdown on Insys Therapeutics And Its Deceptive Marketing Practices

Currently hitting the limelight in the legal field is the class lawsuit filed by several lawyers against pharmaceutical company for its allegedly deceptive marketing practice. The lawsuit is directed towards Subsys, an oral spray for the treatment of cancer pain. The drug is 100 times more potent than morphine and has proven to e useful in providing pain relief to terminal cancer patients.

Subsys debuted in the market in 2012. It was designed as a painkiller for patients with late stage cancer pain. After its launch, the drug delivered record profits for the company. In the first half of 2015, Insys earned $147.2 million in sales from Subsys, which accounted for 99% of the company’s earnings during that period. However, most of the profit came from illegal practices. According to the website of Williams Kherkher, Subsys was prescribed for off-label use in non-terminal patients.

The Food and Drug Administration approved fentanyl for use by patients with late stage cancer pain. However, Insys marketed the drug directly to doctors as a treatment for neck pain, migraine, and other conditions. This was confirmed by former employees of the company who were instructed to target family doctors, internists, and general practitioners. The company also allegedly paid doctors, nurse practitioners, and other medical professionals to prescribe the drug. In 2015, a nurse pleaded guilty to receiving $83,000 worth of kickbacks in exchange for prescribing Subsys to patients.

The most recent case was filed by Illinois Attorney General Lisa Madigan in Cook County Circuit Court. The lawsuit seeks to impose financial penalties and prohibit the company from selling Subsys in the state. The case alleged that Insys routinely marketed the drug for off-label use. In addition, the company marketed the drug to high-volume opioid prescribers who are not oncologists or pain specialists who treated cancer.

In August 2015, the company agreed to pay $1.1 million worth of settlement to officials in Oregon. The amount is more than twice the sales of Insys in Oregon. It also offered a payment of $6.125 million settlement to investors who claimed that Insys had knowledge that10% or approval prescription were for cancer patients.

Ways of Complying with the Financial Responsibility Law

All states in the U.S. require drivers to carry proof of financial responsibility, that is, proof that they are capable of compensating anyone they might injure in a motor vehicle accident wherein they are at fault. This financial responsibility may be shown by:

  • Carrying auto liability insurance, which is the requirement in 48 states
  • Paying the state’s Department of Motor Vehicles (DMV) the required uninsured motor vehicle fee if they decide to register their vehicle as uninsured (paying this fee in lieu of purchasing an automobile liability insurance policy, obtaining a self-insurance certification, depositing money or securities, or securing a surety bond is a practice allowed in the state of Virginia; in the event of an accident, the at-fault driver would be held personally liable in compensating the person that he or she injures)
  • Depositing securities or money with the state treasurer or filing an SR-22 (these are alternatives to purchasing an auto insurance policy, a practice allowed in the state of New Hampshire).

The purpose of financial responsibility, or liability coverage, is to compensate an accident victim for the bodily injuries that he or she has been made to suffer and for all other costs or losses resulting from the injuries.

In the 48 states where carrying auto liability insurance is required, the type of insurance coverage that drivers need to carry depends on the “liability” system recognized in the state where they reside. In states where the “fault” system is recognized (also called “at-fault” or “tort liability” system), the tort insurance coverage is what drivers will need to purchase.

Under the “fault” system, accident victims can get compensation from their own insurance provider or from the at-fault driver’s insurance company; the victim may also decide to file a civil lawsuit against the at-fault driver. Compensation to be paid to the victim will cover cost of medical treatment, loss of income, pain and suffering, and damage to property.

In “no-fault” states, accident victims can recover financial losses from their own insurance providers, regardless of whose fault the accident is. Two major advantages this system has over the “fault” system is that, one, the victim will no longer have to file a lawsuit just to seek compensation (from the at-fault driver) and, two, seeking compensation will also no longer be a problem for: victims of hit-and-run; those whose are hit by a driver in a stolen vehicle; or those who are hit by a driver who is either uninsured or underinsured.

Despite the mandate on carrying liability insurance, millions of drivers rather choose to be uninsured – one reason is the high cost of premiums. The website of Hankey Law Office, P.C., however, tells drivers that being uninsured can be much more costly, thus, it is important that auto insurance be made affordable to everyone. Though there may be hundreds of insurance firms that never stop in finding ways to make premiums expensive, drivers and car owners can always turn to independent car insurance companies for help in finding the best insurance deal and the specific firm that offers this deal.

Wrongful Death

Facing the death of a loved one is never a simple scenario. It might trigger you as well as your family emotional strain and mental distress. As well as grieving and grief, you may also have to handle the load of increased bills. As said on the website of Habush Habush & Rottier SC, sometimes inappropriate deaths cause increased costs for the family of the individual who has passed on. Nevertheless, you shouldn’t necessarily have to confront all these costs by yourself.

When someone you care about dies, the last thing you might want to take into account is how much money it might cost to recognize that individual properly. But you’ll find many facets of a person passing away that demand cash. Some costs of wrongful death that your own family along with you might face include:

  •  Investing in a funeral
  • Paying for funeral costs
  • Investing in decor for a service
  • Spending money on a headstone / burial prices
  • Replacing lost income the dead person provided
  • Paying for almost any other injury-related costs

Nevertheless, lots of cases of wrongful death outcome in the family of the wrongfully departed being compensated because of their situation. According to the Centers of Disease Control and Prevention, there are some instances, such as accidental falls, car crashes or poisioning that are seemingly unavoidable and happen suddenly. However, you can qualify to receive monetary settlement in a suit if yet another person’s reckless or hazardous actions resulted in the loss of your beloved.

All the costs may be difficult for to get for a family who is not prepared to meet them. Oftentimes, wrongful death accidents happen unexpectedly and they are jarring both psychologically and financially. All the family or associates of anyone who has been killed suddenly is confronting the prices of burial. Without assistance, these costs can be exceedingly hard to endure and may add to the strain and grief a family feels.

Key Information on Hit and Run Accidents

It remains an unfortunate reality that vehicular accidents remain a prevalent problem across the United States. Among the most alarming of such issues is the continued occurrence of hit and run accidents or car crashes where the party at fault slips away from the site without offering help or information. According to the National Highway Traffic Safety Administration, this type of accidents has led to a disturbing amount of fatalities in recent years. For 2011, hit and run accidents were recorded to have caused 1,449 deaths. The administration’s data only goes to show the necessity by which this issue needs to be resolved.

Hit and run accidents are particularly devastating because it leaves victims vulnerable to a host of different factors. A serious crash can lead to severe injuries that will require immediate medical attention. With no witnesses and the at-fault driver gone, hit and run victims might not be able to receive prompt medical treatment. This could lead to the victims suffering from lifelong medical conditions or even lead to their deaths. Those that do survive devastating crashes are still left to deal with the psychological and emotional trauma that typically accompanies such trying incidents. There is also a lengthy period of recovery to face, which often proves to be financially draining.

As noted at www.jeffsampsonlaw.com, it is unfair to flee the scene of a car accident and leave those affected by crash to deal with injuries, property damage, medical expenses, and insurance claims on their own. Fortunately, both victims and eye witnesses can take some precautions to ensure the swift response of justice. Among these precautions is requesting medical assistance for injured victims, providing police officers with detailed descriptions of the accident, and taking photographs of the crash.

Seniors Share Residences to Stay Out of Nursing Homes

Home-sharing is a great option for seniors to still live independently while availing the necessary services that they can’t perform on their own. It offers great benefits for both parties – the senior and the participant – as long as the agreement is clear regarding the services that need to be provided and the restrictions are understood. Senior home-sharing may be a good option, but it is not for everyone. Those who have been unfortunately mis-matched have reported elder abuse. Many Tennessee personal injury attorneys understand the plight of seniors who have faced harm or injury from medical or non-medical care providers, which is why the advise seniors and their families to ensure they make the right steps to guarantee the right senior-participant matchup.

In order to be a part of the senior home-sharing program, both parties should first apply. There are a number of home-sharing programs available in the United States, but not every state offers the program. It is important to know whether you are signing in for a match-up or a group residence. Resources such as the National Shared Housing Resource Center can be accessed online and shares a listing of homeshare programs that in available in your state. Regional housing agencies, local office on aging, and non-profit organizations can also offer services as well as information on homeshare programs, and many even administer these programs to help with senior home-sharing.

After applying for senior home-sharing programs, both participants will be interviewed in person in order to get to know them and for the program staff to provide good matches. A home visit will be conducted, as well as a reference check (either by the program staff or the home-provide themselves) to ensure safety. If there is a potential match-up, both parties will be informed and they will meet at the home-provider’s home to determine whether they will be a good match. If they have agreed to the match-up, both parties will be drawing an agreement that would compromise and detail their different needs.

Many home-sharing programs can offer different services, such as independent background checks. Some programs offer to be mediators or negotiators during the drawing of the agreement or when disputes arise, but there are programs that do not offer such services. It is important to therefore conduct research and gather information on which senior home-sharing program would best work for you.

Payment of Child Support: A Must for the Non-custodial Parent

Couples with child/children, but who decide to end their union or relationship through divorce still face the legal obligation of providing for all the needs of their child/children, particularly those below 18 years old. This provision is financial. It is called child support or child maintenance and is paid on a regular basis (usually monthly) to the custodial parent or (if any of the parents cannot perform the duty due to medical or other conditions or is not deemed fit by the court) to the guardian, caregiver or the government, for the child’s care and support.

Child support is one of the major concerns which spouses, or people who enter into a relationship and have a child, will need to settle due to divorce, separation, annulment/dissolution of a marital/civil union, or determination of parentage. Being a court order, payment of child support is, therefore, a legal obligation (which cannot be dismissed even upon declaration of bankruptcy). Non-payment of this court-ordered support is illegal under Federal law and those convicted can face fines and time in jail.

While the passing of the Child Support Recovery Act (CSRA) in 1992 made child support a major concern of the Federal government, the state and local authorities are the ones usually charged with the enforcement of the law. The joint effort, however, plus the CSRA and the method employed by the state in enforcing the law have proven totally effective and efficient, especially in determining the whereabouts of those who try to flee to other states to escape payment of child support (it is important to know that those who owe at least $2,500 in child support are not entitled to receive a U.S. passport. This mandate is from the U.S. Passports & International Travel of the U.S. Department of State’s Bureau of Consular Affairs. Upon settlement of owed amount it may still take the Passport Services 2-3 weeks before it gets approval to process passport application).

Cedar Rapids divorce lawyers can tell you that custodial parents have the right to ask government and law enforcement officials for help in seeking payment (from the obligor, who is the non-custodial parent required to pay the support) for child support or child support arrears. To better provide this help, “Title IV-D” agencies have been created in each state, with the maintenance of a State PLS (parent locator service) as one of its tasks.

Upon discovery of the obligor’s whereabouts, he/she can face federal prosecution if it can be proven that he/she willfully failed to pay child support for his/her child who resides in another state, or if he/she has skipped payment for more than 1 year or the amount owed is more than $5,000. The charge to this crime, though, was only a criminal misdemeanor until the Deadbeat Parents Punishment Act (DPPA) of 1998 made changes to make the charge more serious and the punishments, harsher.

Many lawyers emphasize the legality both of a child support agreement and the amount of support as determined by the court. This is why it is very important that the non-custodial parent adheres to the agreement or court order as payment of support is essential for the welfare of the child. Seeking the help of a qualified divorce lawyer during the divorce process is equally important as this will ensure the representation needed in fighting for the child’s best interests.

Facts about Fall Hazards

The leading cause of construction site fatalities are falls from height, while slip-and-falls (falls on one level) are a leading cause of injuries. It is therefore a major concern for those involved in the construction industry as well as the occupational safety and regulation body.

Fall hazards are identified as a part of the so-called “Fatal Four” in construction in company with electrocution, struck-by, and caught-in accidents. These are the main causes of fatalities (59% in 2009) and injuries in construction. The Bureau of Labor Statistics identified the incidence of different types of fall hazards over a 13-year period (1992-2005) and determined that nearly one out of three was from the roof, 1 out of 5 was from a stage, scaffold or ladder, and 1 out of 10 from girders. From the total of fall hazard fatalities, one-fourth was from falls from lifts, stationary vehicles, and existing openings i.e. sky roof.

The Occupational Safety and Health Administration (OSHA) addresses the issue of fall hazards by requiring the provision and use of fall protection gear for workers working more than 4 feet from the ground or when using or around dangerous machinery and equipment. As pointed out in the website of law firm Hach & Rose, the construction company is responsible for providing the proper safety equipment and tools which are in good condition and regularly maintained, and for the training of workers in their use. In New York, construction companies and contractors are absolutely liable for worksite injuries or fatalities, so it is in their best interest to see to it that their workers strictly follow safety regulations for fall prevention.

Some examples of how fall hazard injuries can happen:

  • Use of a makeshift scaffold or used beyond its load capacity i.e. 4 people for a scaffold designed for two
  • Failure to wear safety harness or fall protection gear
  • Lack of warning signs on open holes or hazardous areas
  • Faulty harness or climbing equipment i.e. ladders

If you have been seriously injured in a fall hazard situation in a construction site, you may need to seek compensation for your medical and other expenses. Find out how by asking a construction accident lawyer.

The Cybersquatting Law and Domain Name Disputes

The Internet has certainly spawned a wide array of colorful, sometimes tongue-in-cheek, terms that has become part of formal lexicon. One of these is cybersquatting, sometimes known as domain squatting, where an individual registers a domain name that is identical or sufficiently similar to a trademark to be confusing in order to benefit from this confusion. As pointed out on the website of Gagnon, Peacock & Vereeke, P.C., a trademark associates a product, service, or in this case a website, to a an established company. When it is used without authorization in domain name registration, the trademark owner may suffer losses in terms of reduced traffic, loss of reputation, or misinformation.

The intent of cybersquatters are typically to force the trademark owner to purchase the domain name or to lead consumers to presume an affiliation or connection between the trademark owner and the site which does not exist. Famous cases include Madonna v. Parisi and Julia Fiona Roberts v. Russell Boyd.

There are two ways that a trademark owner can address a case of cybersquatting. A complaint can be filed with the Internet Corporation of Assigned Names and Numbers (ICANN) for arbitration under the Uniform Domain Name Dispute Resolution Policy (UDNDRP), which will decide if there was bad faith involved on the part of the defendant. However, no monetary award is possible with the UDNDRP. A plaintiff may also file a civil case in federal court under the Anticybersquatting Consumer Protection Act (ACPA) where monetary awards may be requested for any damages the trademark owner sustained from the act of bad faith if the case is proven.

Not all domain name disputes are necessarily based on an intentional act of bad faith; the site owner may have a legitimate reason for registering a particular domain name. In such cases, this is not cybersquatting and the trademark owner may therefore not be able to keep the site owner from retaining or using the domain name. It is important to retain the services of an intellectual property lawyer in domain name disputes to ensure that all legal aspects of a case is carefully and thoroughly considered.

Transforming and Redefining the Physical Workplace Environment

Newer technologies are replacing even very recently released or introduced trends and capabilities faster than ever. This means that a car, for instance, which you just bought last year, may have multiple add-ons this year, making it simply more remarkable than the one you bought – kind of making you feel sorry for deciding to buy too fast, isn’t it?

For businesses, some sort of a quantum leap is also on the horizon – Workplace Mobility – a move that is seen to greatly improve knowledge workers’ performance and increase company profit through a change in the “how” and the “where” these employees work.

This workplace mobility, which banks in North America have started to implement, has as its most basic infrastructure, borderless networks. Thus, with the latest tablet technologies, next-generation smart phones, virtualization, cloud computing and other advancing wireless capabilities, knowledge workers in the areas of technology, media, finance, telecommunications and others, are becoming less dependent with regard to their work’s location.

More and more companies are expected to make big investments on technology next year to enable them to start practicing workplace mobility. They don’t mind spending more since this move will prove to be more profitable in the long run. How? Besides serving as an invitation to younger knowledge workers, who would only be eager to work hard as part of a global team, collaborating with their counterparts regardless of global positioning and time zone, workplace mobility also means significant reduction in company costs. These simply mean retention of skillful and talented workers and bigger company savings due to lesser company travels, fewer printers and computer units, lesser need to purchase office supplies, reduced consumption of energy, and lesser need to rent a big, costly office space.

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