Finding debt relief when your business bills are unmanageable can be stressful. Don’t let it be difficult as well. Here at Mann Law, our business bankruptcy attorneys can offer guidance and peace of mind as they help you through this process. As a business owner, you have two main options, including a Chapter 7 bankruptcy and a Chapter 11 bankruptcy.
Business Law: Business Bankruptcy - Chapter(s) 7 and 11
What is a Chapter 7 Bankruptcy?
Filing a Chapter 7 bankruptcy is a complicated process, particularly if your company is owned as a partnership or if you never set it up as a separate entity. It is important not to tackle this financial strategy on your own. Florida has its own set of rules regarding exemptions during a bankruptcy proceeding, but, in general, businesses cannot claim any exemptions when filing this type of proceeding.
Obviously, there is a lot to consider when you file a Chapter 7 bankruptcy for your business. You may even wonder how this type of filing impacts your ability to open a new business in the near future.
Making the right decision when you are struggling to choose the best financial move for your struggling company is important. Here at Mann Law, our attorneys can meet with you to discuss all feasible strategies. If creditors and lenders are calling you night and day, please call our office for a free consultation to discuss your business bankruptcy options today.
What is a Chapter 11 Bankruptcy?
If you are a small business owner looking for a way to resolve a messy financial situation, one of your options is to file a Chapter 11 bankruptcy. This strategy makes it possible for your company to restructure its operation and continue running.
A Chapter 11 bankruptcy is sometimes referred to as a reorganization bankruptcy. Although this type of bankruptcy takes a long time, it allows the business owner to pay off debts and continue operating. Typically, it involves asset sales, debt restructuring, loan refinancing, and reorganization of your company.
In order for your reorganization plan to become court approved, each named creditor must sign off on it. It’s important to realize that you must repay each debt in full within the given time frame. Your bankruptcy filing simply provides additional time to pay off your debts while possibly modifying your payment plans for each creditor.
It is possible for one of your creditors to file a Chapter 11 bankruptcy for your business. Since you do not have any control over its initiation, this type of filing is referred to as an involuntary petition.
How Our Business Bankruptcy Attorneys Can Help
Here is a list of some of the tedious aspects of filing a Chapter 7 or 11 bankruptcy that our attorneys can help with:
– File necessary paperwork to begin a bankruptcy proceeding
– Assist in compiling a list of company liabilities and assets
– Assist in creating a repayment plan for each creditor
– Work toward a speedy resolution
– Explain your rights during a bankruptcy filing
– Provide specific details pertinent to your case
– Answer any questions you may have
– Offer intelligent direction for your situation
– Help you manage creditor and lender claims against your company