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How to File Chapter 13 Bankruptcy

Article written by Eric Bank

Chapter 13 bankruptcy is available for businesses and individuals with steady income and a willingness to make good on most or all of their debts, but who require extra time to recover a sound financial condition. Normally, you have about three to five years to repay debts after filing Chapter 13. This kind of bankruptcy is more complicated than are others. Businesses that file for Chapter 13 bankruptcy can remain in operation and reach settlements with creditors.

Here are the steps to follow to file Chapter 13:

1.      Review all of your alternatives, and if you choose Chapter 13, refer to material on the web, such as Chapter 13 Bankruptcy Basics from the United States Court. Your secured and unsecured debt can't be more than $807,750 and $269,750, respectively, and you are not allowed to file if an earlier bankruptcy petition was disallowed in the last six months.

2.      Gather information: income, expenses, assets (including exempt assets) and liabilities. Include any liens, judgements, unexpired leases, executory contracts and court ordered commitments. You'll need this information, plus a list of accounts and creditors, in order to complete numerous U.S. Court forms.

3.      Attend the required credit counseling from a bankruptcy-approved provider. When done, you'll be given a certificate that is included in your filing.

4.      Hand in your Chapter 13 petition to the federal court in your home district. The forms can be found at stationary stores and at the United States Courts Bankruptcy Forms website. Be ready to complete many detailed forms, such as the Chapter 13 Meeting of Creditors Notices. The court will then name a trustee to supervise your bankruptcy, but the trustee cannot offer legal advice.

5.      Pay your fees. The court charges a filing fee of $235 plus $75 for miscellaneous expenses. Pay the court clerk when filing the petition. You can extend your payments over four installments, with the final one required within three months.

6.      File a repayment plan within 14 days. It will include a schedule for your fixed regular payments to the trustee.

7.      Attend the creditor meeting that the trustee will oversee. Your creditors will query you about your finances and ways they can get more of their credit repaid. The meeting usually occurs within 50 days after the Chapter 13 filing. At this meeting, you may have the opportunity to settle with some of the creditors, requiring you to then modify your repayment proposal.

8.      Attend the confirmation hearing. The court convenes a hearing in which it can approve your repayment plan. Creditors can come to this hearing and make objections at this time.

9.      Start making payments. You are expected to make biweekly or monthly payments to the court trustee for at least three years.

Alternative Minimum Tax

Detection of Medical Identity Theft

Identity theft has remained a perennial problem that disrupts many lives every year. Medical identity theft - in which someone steals your name, Social Security number or health insurance information for fraudulent purposes related to health care -- is one of the toughest forms of this problem. The fraud may involve assuming your identity to receive medical treatment using your insurance, obtaining drugs or devices meant for you, or stealing your medical information for nefarious reasons.

Discovering the Problem

The reason medical identity theft is so intractable is a combination of elaborate medical privacy laws and the lack of a centralized medical history repository. Although this hampers discovery, you may find that you're the victim of medical identity theft in several ways:

• Finding unexplained treatments or services on a benefits statement from a health care provider
• Getting a bill for equipment or services that you never received
• Discovering an entry on your credit report indicating an unpaid medical bill or a collection against you for an unrecognized medical bill
• Enduring a mysterious denial of treatment or increased premium from your insurance company based on medical costs unrelated to you
• Uncovering inaccurate entries in the medical records maintained by your doctor or hospital
• Receiving an alert from a third party -- an insurance company, law enforcement agency or healthcare provider -- regarding fraudulent activity.

Limiting the Damage

While it may be impossible to prevent medical identity theft, there are several steps you can take to detect the fraud soon after it occurs:

• Immediately review any explanation of benefits that you receive and verify all the activity listed
• Obtain and verify the annual Benefits Request available from your insurance company, which lists all benefits paid in your name 
• You have the right to inspect your medical records from any institution or individual covered by HIPPA (the Health Insurance Portability and Accountability Act of 1996), which you should do if you suspect a mistake or fraud. HIPPA protects your privacy and ensures your access to your medical records.
• Ask for a free, annual Accounting of Disclosures, a report provided by insurers and health care providers listing anyone who received information about your health history.
• If you have one, get a copy of your Medial Information Bureau Report, which is prepared by underwriters when you apply for insurance from an insurer that is a member of the bureau. The report contains confidential information used in the underwriting process, and is available by calling the bureau at 1-866-692-6901.

Top 10 Reasons to Join Your Local Chamber of Commerce

Article written by Eric Bank

As a small-business owner, your days are already too full, so joining your local chamber of commerce (CoC) may not foremost in your thoughts. Well, think again -- you really can't afford not to join the CoC. The benefits these valuable organizations provide are well worth the time you invest, and your company should profit through greater networking and timely information concerning your community and your business.

Here are the top 10 reasons for joining your local CoC:

1.      Credibility

The public at large regards the CoC highly, and being associated with one helps polish members' reputations. Membership will also boost your relationships with other CoC members.

2.      Visibility

You can increase you business' visibility by advertising in the CoC social media sites and newsletters, as well as in other CoC publications. You can also advertise at CoC fundraisers and events, which will help create goodwill within your community and provide a big lift to your public relations efforts.

3.      Networking

You can realize a good opportunity by enlisting in one or two CoC committees. You'll form important contacts with other local businesspeople and you may get to meet local political and civic leaders. Join a committee that will aid your business and also help the surrounding community.

4.      Democracy

Speaking of political leaders, joining the CoC helps you promote your business interests with regard to the vexing social and political issues in the news. Instead of just complaining about unfair taxes, red tape and useless regulation, you can fight for change by helping the CoC educate ill-advised representatives with the facts. CoC works to ensure equal treatment for all businesses, big or small.

5.      B2B

Membership in the CoC helps promote business-to-business relationships. Other business owners may soon seem like your extended family, and you'll probably boost your commerce with other CoC members. Joining CoC is a great way to enhance local networking opportunities.

6.      Information

A local CoC is a primary resource for all manner of local and national information vital to the success of your company. CoC distributes newsletters reporting community developments and information that can help you grow your business. The CoC community calendar lets you schedule your time so that you can go to significant events -- don't shortchange the promotional value of these occasions.

7.      Recommendations

One extra advantage of joining a CoC is all the recommendations you will get from other CoC members for vendors and consumers who need new business relationships.

8.      Special Events

Yearlong, you'll discover that the CoC sponsors many special programs that can educate you and provide additional networking possibilities. It's a great way to develop new leads for your companies.

9.      Advertising

Advertising in a CoC publication adds zip to your promotional and marketing efforts. Other CoC members acknowledge money you spend on ads in CoC media, because it helps the organization grow.

10.   Discounts

CoC members receive a variety of special discounts and services provided by other CoC members. You might save money on, for example, phone equipment or office supplies.

For small businesses, the CoC serves as powerful ally as you grow your company. Membership is a savvy way to improve your business prospects.

Know Your Numbers When Planning for Expansion

Know Your Numbers When Planning for Expansion

Article Written by Eric Bank

In the life of any small business, expansion is an exciting prospect. It signifies that your company is working well and will benefit from getting bigger. Expansion can be risky, but you can cut the risks by knowing your numbers -- sales and costs. You need to know your business' sales volume, its costs and the difference between the two -- margins. Knowing these will demonstrate that you are organized, confident and in command.

Sales

Sales drive all aspects of a business. If you are the owner, it's not reassuring if you are ashamed or vague about your sales. Couching the numbers with phrases like "more or less" or "approximately" causes second-guessing by the others participating in the expansion, including partners, lenders and employees. If you don't know your sales numbers, ask yourself:

·        Why don't you know, precisely? Lenders often say that owners of good businesses know their current sales figures almost to the penny.

·        Do your sales numbers depress you? Sometimes, an owner feels the company isn't doing well and is reluctant to think about the actual sales numbers. That's a troubling message to send to others.

·        Are you too busy to be effective? If you are disorganized and can't focus on your sales figures, expansion will only make things worse.

·        Do you realize that, as the business owner, you are the first one who will suffer from weak sales? Owners have to predict profits for the next period, so that they can pay for expenses and draw a salary. If you don't have a handle on your sales volume, you can receive an unwelcome surprise that forces you to make painful adjustments -- your business can't keep spending money when sales are going down the drain.

Costs

It costs money to make or merchandise a product or service. A business owner must grapple with all costs - direct and indirect, fixed and variable. Although a service-based business has revenues that are not necessarily directly tied to costs, a company that sells products expends costs in each unit produced or bought. Then there are the fixed costs, such as mortgage, utilities, rent and administration, which you must pay even if you lack sales. 

Tracking your costs is imperative, no matter whether your business is expanding or cratering:

·        If your company is growing, you want to make sure good feelings don't hide the fact that you're overspending, because you might suffer an unanticipated slowdown.

·        If your company is faltering, not pinpointing your costs is another kind of denial, which we've already named as a big red flag to others. You should be reducing costs so that they stay proportional to sales.

Your business expenses, direct and indirect, are tax deductible -- a good thing -- because you first have to spend money to make money. You need proper bookkeeping to record and allocate your overhead costs correctly. For instance, how many miles did you travel  order to meet with customers and complete sales? Travel expenses, including depreciation of vehicles, must figure into the cost of each product or service you offer. 

The bottom line: Use a small business accounting firm to take care of your bookkeeping.

National Small Business Week

Article written by Eric Bank

May 4 through May 8, 2015 is designated National Small Business Week (NSBW) by the Small Business Administration. If you are one of our clients, you are a brilliant small business and deserve special mention. You work hard all year long, building your company, pushing growth upwards, balancing your books and filing your taxes -- that is, letting Small Business Financials take care of those last two chores for you!

This is the 52nd  year that, by presidential order, a week has been set aside to honor the small business entrepreneurs like yourself that make this country work. We think it's a good opportunity to step back from the daily same old same old and participate in the festivities. If you can't make it this year, you can begin planning to join in next year.

Small Business Person of the Year

One deserving individual will be singled out by the SBA as the Small Business Person of the Year. While it's too late to enter this year, how about getting a jump on 2016? Here's how it works:

1.      You first must be nominated, by a professional trade group, business organization, another entrepreneur or even yourself -- hey, no need to be modest!

2.      The nominations are sent to the SBA where they go through a multi-level review process. The winning nominees must have a good record of accomplishment, have shown the ability to withstand reversals, have increased the headcount of their organizations and have made meaningful contributions to their community.

3.      One winner is picked from each state and territory, and then a finalist group of six worthies is chosen.

4.      All six finalists attend a White House ceremony on May 8 in which the grand winner is announced.

You can bet that the grand winner will enjoy a year in the spotlight and will be sought after for advice and interviews. It's also great publicity for the winner's company, that's for sure.

Here Comes the SBA Administrator

During NSBW, the SBA Administrator crisscrosses the country to commemorate the festivities. This year, the administrator, Maria Contreras-Sweet, will pop up in:

·        Miami/Boca Raton

·        Los Angeles

·        San Antonio

·        New York

·        Washington, D.C.

Each city will hold national events and all business people are invited to attend, but you need to register in advance. For all those unable to attend in person, the SBA has arranged for each event to be live streamed -- you can tune in at www.sba.gov.

"Dream Big, Start Small"

That's the theme for the 2015 commemoration. In addition to the five national venues, the week will see many local events in which experts will impart advice on a number of important topics, such as getting an SBA loan or bidding on a government contract. Parties and networking will enliven the week, and it's a great opportunity to get your small company's name out there. Some cities will host events later in May. For example, San Francisco will hold a seminar on May 16 about doing business in that city. 

The contributions of small-business owners to the American economy can't be overestimated. Small company growth spurs employment and wealth, and many small businesses become medium- and large-sized ones over time. The NSBW is a fitting tribute to the hard work of entrepreneurs who deserve recognition for all they do. So don't be a wet blanket -- join in and enjoy, you've earned it!