Fong Law Group

How Bankruptcy Can Be Positive

How Bankruptcy Can Be Positive

Facing overwhelming debt and financial hardship can be a particularly stressful time in one’s life. As you try to navigate the coming days, weeks, and months, you will be faced with tough decisions, including whether or not you should consider filing for bankruptcy. While this can be an important time to consult an advisor such as a bankruptcy attorney, you may want to take this time to reflect on how bankruptcy can actually be positive, and provide you and your family with certain benefits. Here are just a few of the positive benefits of filing for bankruptcy, and how doing so can help get you out from under your crippling debt by giving you a fresh start.  

Dismissed Unsecured Debt

One way in which bankruptcy can help give you a fresh start is through the dismissal of any unsecured debt. When filing for bankruptcy, any debts you have which are not backed by an asset, such as a home or business, are discharged. These debts include debt acquired through medical and credit card bills.

Relief from Debt Collectors

When struggling with debt, encounters with creditors and collections agencies can become a daily reality. Getting back on one’s feet can be difficult enough without the stress of constant reminders of one’s debt. One of the benefits of filing for bankruptcy is that once you file, there is a stay period where creditors are not allowed to contact you and can be penalized if they do, which can give you a break from the harassment.

Protection of Certain Property

Filing for bankruptcy in a timely manner can actually help to protect you and your family by giving you a chance of keeping your home. Depending of the jurisdiction in which you live, when you file for bankruptcy, and the value of your home’s equity, your home could be protected from liquidation by filing for bankruptcy.

While filing for bankruptcy can be a scary, overwhelming process, for many individuals, doing so can be a positive experience as well. Filing for bankruptcy allows you to get a fresh start financially, and can help to distance yourself from the stress and anxiety of your previous financial struggles. Call Fong Law Group at (626) 289-8299 and talk to an attorney today.

What Are Some Good Tips for Business Succession Planning in The Internet Age? 在這互聯網時代，有什麼好提議給商業繼任計劃？ (中英對照)

“Many business owners build their businesses hoping that they will continue to generate income for their heirs, after they pass away. However, businesses often die or lose significant value when the owner dies.”

When considering how to make sure your business continues to thrive, it’s important to remember that if you do nothing, your business already has a default plan in place: if no additional planning is done, your business is an asset of your estate and will be subject to probate.

Forbes’ article, “Business Succession Planning In The Internet Age,” says that there are four issues with this default plan. First, it can take years for a court to probate your estate. In that time, your business can dry up, when probate is finalized. Next, if you do not have an estate plan, your heirs may fight over who will inherit the business. Whoever inherits the business under the state’s intestate succession laws may also not be the best person to make sure your business will continue to grow and be successful. Finally, if you have co-owners, they might not like your heirs and could get into disputes with the new owners that harm the business.

There are two legal tools to look at when reviewing your options: a buy-sell agreement and good estate planning.

A Buy-Sell Agreement. This is a contract between the co-owners of a company that addresses a variety of business-changing events, such as when an owner dies. Rather than the deceased owner’s equity being a part of the assets distributed during probate, the buy-sell agreement can include an agreed-upon amount that will be paid to the estate, in exchange for the business repurchasing the equity. The purchase is often financed with a life insurance policy on each owner of the business.

Estate Planning. Instead of allowing your business to be subject to probate, a business owner can work with an estate planning attorney to make the business an asset of the owner’s trust.

With either option, be sure you note the important digital assets for the continued operation of your business. Your business’s digital assets may include customer lists, intellectual property and creative products. It is important to remember these tips on considering your digital assets:

1. Understand the policies that impact your tools. Review your software provider’s policies on what happens if your company needs to name a new point of contact, pay bills differently, or be transferred to a different company, in case the unexpected happens.
2. Security and redundancy. A company’s success requires owners and employees to keep proprietary information and client information secure. However, the concern for safety must be balanced with redundancy that considers which people will have access to digital assets and an understanding of what to do with them, if the owner or main management team is unable to tend to business as usual.
3. Add digital assets in legal documents. Include an inventory of digital assets in your buy-sell agreement or estate plan. Be specific about who should get access to digital assets.

Creating a detailed plan as to who should have access to your business’s digital assets in case of your incapacitation or death, is an important part of succession planning.

Reference: Forbes (April 8, 2019) “Business Succession Planning In The Internet Age”

“許多商人成立他們的企業是希望能在他們去世後繼續為他們的繼承人製造收入。可是，當企業主去世時，企業往往會倒閉或失去價值。＂

在考慮如何確保您的業務可繼續蓬勃發展時，更重要的是要緊記如果您什麼都不做，有人已經為您的企業做了一個預設的計劃：如果沒有做好額外的計劃，您的業務就是您的資產，將需通過遺囑認證。

Forbes的文章“Business Succession Planning In The Internet Age,”說到，此預設計劃存在四個問題。首先，法院可能需要數年時間來審理您的遺產。到了那個時候，當遺囑認證敲定時，您的企業可能已不存在。接著，如果您沒有資產計劃，您的繼承人可能會因誰將繼承該企業而爭吵。根據州的無遺囑繼承法，　繼承業務的人可能不是一個使業務持續發展並取得成功的最佳人選。最後，如果您有合夥人，他們可能不喜歡您的繼承人，並可能與新業主發生爭執而有損業務。

在審視您的選擇時，有兩種法律工具可考慮：買賣協議和良好的資產規劃。

買賣協議。這是公司合夥人之間所簽的合同，該合同涉及各種業務變化，例如企業主去世時。買賣協議不是將去世的企業主的權益作為遺囑認證期間分配資產的一部分，而是將商定金額支付給遺產，以換取回購過世合夥人的股權。回購通常由企業的各業主的人壽保險來提供資金。

資產規劃。企業主可與資產規劃律師合作，將企業資產變成企業主的信託的資產，以避免企業資產通過遺囑認證。

無論選擇哪種方式，請務必記下重要的數碼資產，以便繼續經營您的業務。您企業的數碼資產可能包括客戶名單，知識產權和創意產品。在考慮您的數碼資產時，需要緊記一些技巧：

1.了解影響工具的政策。如果您的公司需要指定新的聯繫人，以不同的方式支付賬單或轉移到別的公司，以防意想不到的事情發生，請查看您的軟件供應商的政策。

2.安全和過多。公司的成功是有賴企業主和員工保護專有信息和客戶資料的安全。但是，如果企業主或主要管理團隊無法照常營運，那麼對安全的關注必須包括考慮哪些人可以取得數碼資產以及了解如何處理這些資產。

3.在法律文件中加入數碼資產。在您的買賣協議或資產計劃中包含數碼資產清單。具體說明誰可取得數碼資產的權限。

制定周詳的計劃，確定在您失去能力或去世後誰可取得您企業的數碼資產的權限，這是繼任計劃的重要部分。

參考: Forbes (April 8, 2019) “Business Succession Planning In The Internet Age”

Retiring Business Owners, What’s Going to Happen to Your Business? 退休的商人，您的業務將會怎樣？ (中英對照)

“Owning a business can allow control over financial success, expanded creative freedom and an ability for growth that may be stifled in large corporations.”

When the business owner retires, what happens to employees, clients and family members all depends on what the business owner has planned, asks an article from Florida Today titled “Estate planning for business owners: What happens to your business when you leave?” One task that no business owner should neglect, is planning for what will happen when they are no longer able to run their business, for a variety of reasons.

The challenge is, with no succession plan, the laws of the state will determine what happens next. If you started your own business to have more control over your destiny, then you don’t want to let the laws of your state determine what happens, once you are incapacitated, retired or dead.

Think of your business succession plan as an estate plan for your business. It will determine what happens to your property, who will be in charge of the transition and who will make decisions about whether to keep the business going or to sell it.

Your estate planning attorney will need to review these issues with you:

Control and decision-making. If you are the sole owner, who will make critical decisions in your absence? If there are multiple owners, how will decisions be made? Discuss in advance your vision for the company’s future, and make sure that it’s in writing, executed properly with an attorney’s help.

What about your family and employees? If members of your family are involved in the business, work out who you want to take the leadership reins. Be as objective as possible about your family members. If the business is to be sold, will key employees be given an option of buying out the family interest? You’ll also need a plan to ensure that the business continues in the period between your ownership and the new owner, in order to retain its value.

Plan for changing dynamics. Maybe family members and employees tolerated each other while you are in charge, but if that relationship is not great, make sure plans are enacted so the business will continue to operate, even if years of resentment come spilling out after you die. Your employees may be counting on you to protect them from family members, or your family may be depending upon you to protect them from disgruntled employees or managers. Either way, do what you can in advance to keep everyone moving forward. If the business falls apart the minute you are gone, there won’t be anything to sell or for the next generation to carry on.

How your business is structured, will have an impact on your succession plan. If there are significant liability elements to your business, risk management should also be built into your future plans.

To make your succession plan work, you will need to integrate it with your personal estate plan. If you have a Last Will and Testament in a Florida-based business, the probate judge will appoint someone to run the business, and then the probate court will have administrative control over the business, until it’s sold. That probably isn’t what you had in mind, after your years of working to build a business. Speak with an estate planning attorney to find out what structures will work best, so your business succession plan and your estate plan will work seamlessly without you.

Reference: Florida Today (Feb. 12, 2019) “Estate planning for business owners: What happens to your business when you leave?”

“擁有一家企業可以掌控財務上的成功，擴展創意自由和增長能力，但這些都可能會被大公司所扼殺。”

當企業主退休時，員工，客戶和家庭成員所發生的一切都取決於企業主的計劃，Florida Today一篇題為“Estate planning for business owners: What happens to your business when you leave?”的文章, 任何企業主都不應忽視的任務就是因各種原因而不能再經營業務時會發生什麼。

挑戰是，如果沒有繼任計劃，州的法律將決定接下來會發生什麼。如果你創業的目的是為了更好地掌控自己的命運，那麼你就不想在你喪失能力，退休或去世時將會發生什麼由你所居住的州的法律來決定前路如何。

將您的業務繼任計劃視為您業務的資產計劃。它將決定您的財產會怎樣，誰將負責過渡以及誰將決定是繼續經營還是出售。

您的資產規劃律師需要與您一起審查這些問題：

操縱與決策。如果您是唯一擁有人，誰將在您缺席時做出關鍵決定？如果有多個業主，將如何做出決定？提前討論您對公司未來的願景，確保以書面形式，並在律師的幫助下正確地執行。

你的家人和員工會怎麼樣？如果您的家人參與了生意上的管理，您需要決定誰是掌舵人。盡可能客觀地了解您的家人。如果要出售業務，關鍵員工是否可以選擇買斷家庭股權？您還需要一個計劃，以確保業務在您擁有下和新擁有者的期間繼續運作，以保持其價值。

計劃改變動態。也許家人和員工在你在任期間相互容忍，但如果他們關係不是很好，那麼確保制定計劃以便業務可繼續運作，即使是多年的積怨在你死後爆發出來。您的員工可能依靠您來保護他們免受你家人的傷害，或者您的家人可能依賴您來保護他們免受心懷不軌的員工或經理傷害。無論哪種方式，盡可能提前做好讓每個人都可前進的方法。如果業務在您離開的那一刻就崩潰了，那麼就沒有任何東西可以出售讓下一代可繼續。

您的業務結構如何，將對您的繼任計劃產生影響。如果您的業務存在重大的負債因素，則風險管理也應納入您的未來計劃中。

要使您的繼任計劃有效，您需要將其與您的個人資產計劃結合。如果您在佛羅里達州的公司有遺囑，遺囑認證法官將指定某人來經營該公司，然後遺囑認證法庭將擁有該公司的行政控制權，直至該公司被出售。在你多年努力建立公司後，這可能不是你想要的情況。與資產計劃律師聯繫，了解哪種方案最有效，因此您的業務繼任計劃和資產計劃將在沒有您的情況下無縫運作。

參考: Florida Today (Feb. 12, 2019) “Estate planning for business owners: What happens to your business when you leave?”

Business Owner Without an Estate Plan? Better Start Planning! 沒有資產計劃的企業經營者？最好開始計劃！(中英對照)

“There is a lot to think about, when business owners begin estate planning.”

As business owners start thinking about the most valuable asset that they own, they need to make some major decisions about their estate plan: do they want to pass the company to the next generation or sell it? In both cases, says Smart Business in the article “Questions for business owners to consider when estate planning,” starting the process of planning needs to begin early to ensure a smooth transition.

If the owner waits until illness or disability occurs to begin planning, chances are good that it will be too late.

First, the business owner needs to determine, if the business should continue or if it should be cashed out. If the owner wants to see the next generation take over, the owner will need to take a candid look at how engaged various family members are in the business and if they can realistically manage and continue to operate it, without the founder at the helm.

If there are many family members—kids, in-laws, etc.—then roles need to be defined, so everyone knows their responsibilities.

If there are children who have no interest in being part of the business, then a decision needs to be made about how they will benefit fairly.

If one of the owners of the business is not a family member, the owners need to discuss how that ownership is going to transfer, when one of them departs. You’ll need buy-sell agreements in place, as well as a succession plan. What will happen if one of the owners becomes disabled or dies unexpectedly?

The decision to sell the business or plan for the non-family management team to control the business, needs to be made and acted upon. The management team needs to be on board with these decisions and everything needs to be in writing.

The biggest obstacle to smooth transitions for business owners, is failing to make a decision. If the heirs are left to figure things out and end up battling over shares of the business and responsibilities, the business will suffer, and the family is often left needing to sell an unprofitable business that has lost value.

Planning for a business owner to step down, should start once the business is successful and profitable. Having a succession plan, which also includes an estate plan, prepares for any unexpected occurrences and allows family members to get comfortable in their roles as future leaders of the business.

Speak with an estate planning attorney about your plans for your business to ensure that a successful plan aligns with your estate plan.

Reference: Smart Business (Aug. 27, 2018) “Questions for business owners to consider when estate planning”

 “當企業經營者開始進行資產規劃時，需要考慮很多事情。”

隨著企業經營者開始考慮他們擁有的最有價值的資產，他們需要對他們的資產計劃作出一些重大決定：他們想將公司傳給下一代還是出售？在這兩個案例中，Smart Business在文章中說 “Questions for business owners to consider when estate planning,” (企業主在進行資產規劃時要考慮的問題) 規劃過程需要儘早開始，以確保順利過渡。

如果企業經營者在疾病或殘疾發生之後才開始計劃，那麼很有可能已經晚了。

首先，業務經營者需要確定是否應該繼續業務或是否應該把它出售套現。如果經營者希望下一代接管，企業經營者將需要坦誠地看各個家庭成員在業務中的參與程度，以及他們是否真的能夠管理並繼續運營它，而無需創始人幫助。

如果有許多家庭成員 - 孩子，姻親等 - 那麼就需要定義角色，因為這樣每個人都知道自己的責任。

如果有孩子沒有興趣為企業工作，那麼就需要做出決定如何讓他們如何平等受益。

如果該業務的經營者之一不是家庭成員，當這人離開時，業務經營者需要討論所有權將如何轉移。您需要製定買賣協議以及繼任計劃。如果其中一位經營者意外殘疾或意外死亡會怎樣？

需要決定並採取行動，是出售業務還是讓非家族管理團隊掌控業務。管理層需要參與這些決策，所有決定都需要以書面形式確認。

企業經營者要順利過渡的最大障礙是遲疑不決。如果繼承人要自己解決問題並為公司的業務和權責而起糾紛，那麼業務將受到損害，而且家庭最後可能需要出售一個無利可圖的業務。

企業管理人在業務上取得成功並且有盈利後便應開始為退任作出規劃。制定繼承計劃包括資產計劃，為任何意外事件做好準備，並讓家庭成員適應未來的業務領導者角色。

與資產規劃律師討論您的業務計劃，以確保成功的計劃與您的資產計劃一樣。

參考: Smart Business (Aug. 27, 2018) “Questions for business owners to consider when estate planning”