San Jose Bankruptcy Lawyer Discusses Emerging After San Jose Symphony's Chapter 7 Bankruptcy Filing, Symphony Silicon Valley Strikes A Positive Note With New Business Model
San Jose Bankruptcy Lawyer Discusses Emerging After San Jose Symphony's Chapter 7 Bankruptcy Filing, Symphony Silicon Valley Strikes A Positive Note With New Business Model
Symphony Silicon Valley, a smaller organization that emerged after the San Jose Symphony filed for Chapter 7 protection in 2002, is growing as it hits its fifth season this year. It's success is due in large part to a new business model.
Rather than hiring famous conductors to reside at the symphony, Symphony Silicon Valley is only working with guest conductors, with each show presided over by a different conductor. The new model is a cost saver, as celebrity conductors are very expensive to have in-house. The reduced budget now goes toward paying the musicians’ salaries. In addition, the orchestra’s 12-week seasons are two-thirds shorter than the old orchestra’s seasons. There are only four members on staff, and a musicians’ committee decides which conductors should join the orchestra.
Symphony Silicon Valley’s slow-growing success has started to draw national attention, especially since 9 out of 250 American Symphony Orchestra League orchestras have filed for bankruptcy protection since 2002.
When a company becomes bankrupt and there is no way they can continue in operation, they may file under Chapter 7 bankruptcy. This means that the company ceases operations immediately and must work with a court-appointed trustee to liquidate their assets to pay legal and administrative expenses, as well as their creditors. Secured creditors will be paid first. If there isn’t enough money to pay secured creditors, then secured creditors will join the ranks of the unsecured creditors. Unsecured creditors can then file claims to be paid in case any money remains at the end.
Advantages to a Chapter 7 filing:
(1) The amount of debt you can erase is not limited.
(2) Unpaid balances due after assets are distributed are erased ("discharged" in bankruptcy language).
(3) Wages you earn and property you acquire (except for inheritances) after the bankruptcy filing date are yours, not the creditors or bankruptcy court.
(4) There is no minimum amount of debt required.
(5) Your case is often over in about 3-6 months, enabling you to get out from under the burden of debt quicker.
Disadvantages to a Chapter 7 filing:
(1) You lose your non-exempt property which is sold by the trustee.
(2) Some debts survive and can be collected after your case is closed (e.g., mortgage liens).
(3) If facing foreclosure on your home, lender's efforts are only temporarily stalled by filing.
(4) Co-signors of a loan can be stuck with your debt unless they file for similar protection.
(5) You can file this type of bankruptcy only once every six years.
(5) Bankruptcy damages your credit rating.
(6) It is difficult to withdraw from a Chapter 7 filing.
If you own a business located in Santa Clara County, Monterey County, or Alameda County, and you wish to determine whether filing chapter 7 bankruptcy is the best decision for your company, contact Sagaria Law, P.C. for a free consultation. We work with companies and individuals in all bankruptcy-related matters. Our offices are conveniently located in San Jose, Fremont, and Monterey.
Pass The Baton, Please. Symphony Silicon Valley Tries Out New Business Model, Using Guest Conductors Only, San Francisco Chronicle, December 5, 2006
Symphonies Troubled All Over, Findarticles.com, January 13, 2003
Pluses And Minuses To Chapter 7 and Chapter 13
Related Web Resource:
Chapter 7 Bankruptcy Basic, US Courts.gov
