One of the challenges of providing services to corporations and institutional customers is that most will demand that you give them payment terms. This means that you have to give them anywhere between 30 days to 60 days to pay an invoice. However, many executive compensation consulting companies have ongoing operating expenses that are due sooner than that. Obviously, if the company has the financial resources to wait for payment, this will not be a problem. On the other hand, if the company has limited resources or if its growing quickly, it could run into cash flow problems.

One way to solve this problem is to reduce the amount of time that customers take to pay their invoices.

Full Post…

Major indices were down by around half of a percent today, as pessimistic comments by Federal Reserve Chairman Ben Bernanke made investors wary. Bernanke told the public not to expect very strong job growth in 2012, and that the big drop since September had come as a surprise to him. On the other hand, estimated GDP growth from Q4 2011 was revised up, to a 3 percent annualized rate. In corporate news, James Murdoch will be stepping down from head of News International, the scandal-laden UK wing of News Corps’ (NWSA) business. General Motors (GM) bought a 7 percent stake in a french automaker, as part of a broad alliance to lower their operating costs. Full Post…

Farmers and fishermen have one advantage over other people when it comes to filing for bankruptcy. They can modify their mortgage through the bankruptcy process. One theme that you will often read when looking through our pages is that bankruptcy is not the best solution for distressed mortgages. Under a Chapter 7 petition, filing will freeze any actions by the lender when it comes to foreclosing, however, once you have been discharged, the lender can proceed with foreclosure. Chapter 13 petitions do provide an opportunity to catch up on arrears, so preventing the need for foreclosure – until you fall behind again.

A Chapter 12 petition for bankruptcy is designed solely for primary produces. T

Full Post…

Introduction

Earlier this month, JH Cohn, LLP (“Cohn” or “Plaintiff”) began filing preference complaints against various defendants in the Orleans Homebuilders (“Orleans”) bankruptcy proceeding.  For those not familiar with the Orleans bankruptcy proceeding, Cohn was appointed as the “unsecured creditor agent” pursuant to order confirming Orleans’ Modified Second Amended Joint Plan of Reorganization (the “Plan”).  Pursuant to Orleans’ Plan, Cohn filed the preference actions seeking both to avoid transfers it contends are avoidable transfers under the Bankruptcy Code, as well as disallow claims pursuant to 11 U.S.C. s

Full Post…