Business Bankruptcy Law

Business Bankruptcy

Business Bankruptcy Law:

If a business is suffering from severe economic hardships and can no longer pay their debts and bills, they may be eligible to apply for business bankruptcy. Depending on the size of the business, business owners may file under Chapter 7 of business bankruptcy, Chapter 13, or more commonly, Chapter 11.

Business owners can file under Chapter 7 bankruptcy if they are a partnership, LLC or corporation and can no longer afford to stay in business or pay off their debts. They will be required to pay off whatever amount the rest of their funds allow, and then the debts are eliminated. Only individual business owners can file for Chapter 13 bankruptcy, which would allow them to go on a payment plan to pay off consolidated debt.

Chapter 11 bankruptcy is the type of business bankruptcy to file under if the business plans to continue their operations. If they are an LLC, partnership or corporation, they can restructure and have a fresh start. Chapter 11 bankruptcy allows the business to restructure their payment terms with creditors, reduce debts, and sell assets if they wish to downsize. Ultimately, this allows the debtor to stay in business and balance their income and expenses until they become profitable again.

Business Bankruptcy Legal Issues:

Filing for business bankruptcy is a complicated and long process for small and large businesses alike. Small businesses, however, are entitled to special provisions to help them reduce the expenses and time it takes to file under Chapter 11. If considering filing under Chapter 11, a business will be required to deal with a creditor's committee, file and report a great deal of detailed financial information, meet certain deadlines, and prepare expensive disclosure statements to all creditors. Mistakes made or choosing the wrong Chapter to file under can result in unchangeable consequences for your business and/or your own finances.

What a Bankruptcy Lawyer can do for you:

A business bankruptcy attorney will be extremely knowledgeable in all options for struggling business owners. Whether you are an LLC, corporation, partnership, small business or big business, the assistance of an attorney can help keep your costs down, your filing time shorter, and your assets in place. A bankruptcy attorney can explain your rights in detail and will walk you through the steps of collecting all the information needed in order to file for business bankruptcy. An experienced bankruptcy lawyer representing you in a bankruptcy case can mean that you and your business will not suffer, whether you intend to liquefy your business or reorganize and continue operations.

Lawyer Referral Service:

At Attorney Search Network we can refer business bankruptcy lawyers who will be committed to helping you free yourself from debts, creditors, collections, foreclosures, and other financial burdens. If you are planning to file for business bankruptcy, contact Attorney Search Network to get the assistance, knowledge and support of an experienced lawyer.

Attorney Search Network can provide you with an attorney referral you to a pre-screened Chapter Eleven bankruptcy lawyer in your area today.