If you are struggling to keep up with the bills for your business or you simply can’t afford to pay off the debt, you may need a Business Bankruptcy Attorney. Filing for bankruptcy can help a business owner get a fresh start and eliminate or reduce their debts.
The Business Bankruptcy Attorney’s Experience
It is important to find an experienced business bankruptcy lawyer who can understand the legal and financial implications of filing for bankruptcy. They should also be familiar with the local court system and the different types of bankruptcy.
A good business bankruptcy lawyer will be able to guide you through the process and explain the best course of action for your specific situation. They should also be honest about the pros and cons of filing for bankruptcy, and they should offer alternative solutions if possible.
The Types of Business Bankruptcy
Depending on the current financial circumstances and financial position of your business, your bankruptcy lawyer will determine if it is more beneficial to file for Chapter 11 “reorganization” or Chapter 7 “liquidation.” Both can help you restructure debt obligations and liquidate assets.
Chapter 11 is more complex than Chapter 7, but can help a company restructure and significantly reduce its debt. Its benefits include allowing a business to maintain its operations, and negotiating with creditors to make payments under the terms of a plan.
It can take a long time to complete a Chapter 11 bankruptcy, especially in small businesses. It is typically necessary for the firm to develop and submit a plan of reorganization to the United States Trustee.
Once the Trustee approves the plan, the company can then begin to make payments to its creditors. Throughout the entire process, the court will supervise a creditors’ committee that is appointed by the United States Trustee.
The committee will attempt to recover as much money from the business’s creditors as possible, and it will also make recommendations to the bankruptcy judge about whether or not to accept the reorganization. If the judge does not agree with the reorganization, a lawsuit can be filed to challenge it.
A Business Bankruptcy Lawyer can also assist a business in forming a new entity, such as a limited liability company or a partnership. The attorney will ensure that the new business is formed and established correctly under state and federal law. This can be particularly critical if the new business is not exempt from Chapter 7 bankruptcy–which means that the Trustee can still take the property of the new business and sell it to pay off creditors.
When looking for a good Business Bankruptcy Attorney, you should look for a lawyer who has an excellent reputation in the community. Ideally, you should also check their standing with the bar association in your state.
You can also ask friends and family for recommendations. If someone you know has used a lawyer, they can provide valuable feedback on the services they received from them.