Business Bankruptcy

For a small to mid-sized business struggling with debt, bankruptcy can offer a way out.

 

We will work with you to restructure your business.  Sometime, we will help you to liquidate your business in an order way to try to get taxes and other important debts paid, or to help you get a fresh start with a new entity.  If bankruptcy is not the best option for your business (and often it is not) we will not hesitate tell you that, and help you to negotiate a debt workout.

Chapter 11 - Reorganization

Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually for a corporation or partnership. A chapter 11 debtor proposes a plan of reorganization to keep its business alive and pay creditors over time. High net-worth individuals can also seek relief in chapter 11.

 

Chapter 11 is designed to let struggling businesses restructure their finances while they continue to operate their business and manage their debt.

Chapter 7 - Liquidation

When you file for Chapter 7, the bankruptcy “automatic stay” immediately protects you from your creditors. In exchange for that protection you agree to allow the bankruptcy trustee to liquidate all non-exempt assets in order to pay those creditors. This effectively ends your small business, but can give you the ability to move forward with a new entity.  It allows for an orderly liquidation, and is sometimes the best way for a business to wind down.

Chapter 13 - DBAs and Sole Proprietors

For businesses that are not incorporated or organized as LLCs, but have non-family member employees and significant business debt, Chapter 13 bankruptcy can offer a more cost-effective alternative to Chapter 11 reorganization..

Loans & Business Workouts

Many businesses simply need someone to negotiate with creditors, and debt workouts can sometimes offer an alternative to bankruptcy.

Bankruptcy Litigation

Although lawsuits are not usually a part of most bankruptcies, sometimes a debtor may bring a lawsuit, or other times have a lawsuit brought against them. Not all bankruptcy attorneys are experienced litigators, and sometimes even experienced litigators can find navigating complex litigation in bankruptcy court difficult. Many debtors have to find outside counsel if an adversary proceeding arises in their case. Our unique combination of complex litigation and bankruptcy skills allow us to comfortably handle lawsuits that arise in the course of bankruptcies.

Ready to talk? Call us at 919-246-4676