What should be considered when contemplating business bankruptcy?
On behalf of Furr & Cohen, P.A. posted in chapter 7 on Thursday, May 26, 2016.
The dedication, hard work, and knowledge it takes to begin and ensure a business is successful is vast. However, there are also factors that can be beyond our control, such as a failing economy, unforeseen circumstances, or a drastic change in the market. These situations can often result in the accumulation of what may seem like insurmountable debt. There, are, however, options, even when there seems like there may not be.
Business and commercial bankruptcy is a complicated process. When a company considers filing bankruptcy, there are essentially two choices. The first option involves Chapter 11 of the Bankruptcy Code. In this instance, the bankrupt company can reorganize their business in an attempt to become profitable again. Under Chapter 11, management may continue to run the business, although the bankruptcy court must first approve any critical decisions before being put into action. The second choice is Chapter 7 of the Bankruptcy Code, in which the company ceases all operations and goes out of business. A trustee is then appointed, and the proceeds from the liquidation of assets are used to pay off the company’s creditors.
Regardless of which option you choose, ensuring there is an adequate plan in place is crucial to ascertain the best outcome for the business. Given the complicated choices involved, it is essential to obtain the services of an expert bankruptcy lawyer to oversee all details of the proceedings.
The best lawyer to handle your company’s bankruptcy will be well versed in the complex business bankruptcy issues, and will advise the client of all aspects of the bankruptcy process to assist them in making the best choices for the future of their business. Each situation is unique and should be treated as such, and all possibilities considered. Having the right representation will ensure this is the case.