If your business debts are interfering with operations or financial viability, then it is time to consider your options. When a small business finds itself without access to adequate cash and no reasonable expectation that the situation will change, filing for bankruptcy protection becomes an important consideration.
Business bankruptcy is the process of working within the bankruptcy court system to eliminate, restructure, or repay business debt. Business bankruptcies usually take on the form of either liquidations or reorganizations.
We provide level-headed and erudite counsel that stems from careful evaluation of applicable scenarios and the facts of your case. There are several factors we will discuss that will influence this decision such as:
- Whether you are personally liable for the business debts (such as providing personal guarantees or assets as collateral).
- What type of business form you are using (sole proprietor, corporation, etc.).
- Whether you want to liquidate the business or continue operations. If alternative approaches, other than filing for bankruptcy, surface, we will apprise you of those, as well.
Bottom line, we will provide you with information, guidance and insights that will help you choose the most advantageous approach to staunchly protect yourself and your company as much as legally possible. We will also provide you with astute advocacy and negotiation expertise that have been honed through hundreds of similar filings. Contact us today.
The two main types of corporate bankruptcy filings are:
Chapter 11: This type of bankruptcy requires repayment of debt through a reorganization plan, and allows a business or an individual to continue operations while under bankruptcy protection from creditor claims.
Chapter 7: This method is used for partnerships and corporations that want to liquidate their business assets and cease operations. Sometimes a business entity will restart operations under a new business form or identity. If you are a sole proprietor, you would file a personal Chapter 7 bankruptcy and list the business assets along with personal assets.