Is your business drowning under a pile of accumulating debt?
Contact one of our business bankruptcy lawyers today to see if filing for bankruptcy could benefit your business.
Starting a business can be one of the greatest accomplishments in life. It takes preparation, perseverance and a strong sense of courage to get everything put in place and on the right track. Once a business is up and running, the hope is to remain profitable indefinitely, but sometimes an amalgamation of issues occurs that makes this endeavor difficult or even impossible to achieve.
If your business is experiencing repeated financial setbacks and a growing mound of debt, it may be in your best interest as a business owner to solicit the counsel of an experienced business bankruptcy lawyer from Hayes, Berry, White & Vanzant, L.L.P. Our firm can help you decide if filing for bankruptcy is a viable option for your business entity.
Should Your Business File for Bankruptcy?
The accumulation of debts and liabilities can put a business in financial danger if that particular business cannot meet monetary obligations on time. Depending on a business’s situation, filing for bankruptcy could prove to be an alleviating solution. If you are considering bankruptcy, first ask yourself a few questions:
- What is the legal standing of your business (e.g., sole proprietorship, limited liability company, corporation or partnership)?
- Is it possible to keep your business functional, or do you plan to close it?
- What debts do you have, and what is the collective monetary amount?
- Are you personally liable for any business debts?
Depending on your answers to these questions, there may be viable bankruptcy options available to aid your business.
“Depending on a business’s situation, filing for bankruptcy could prove to be an alleviating solution.”
An experienced business bankruptcy lawyer from Hayes, Berry, White & Vanzant can lend professional counsel when deciding if filing for bankruptcy is a wise decision for your business.
Know Your Business’s Bankruptcy Options
If your business is considering bankruptcy, it is important to know the different options available to you. An experienced business bankruptcy lawyer from our firm can offer you sound legal counsel and let you know what your options are as a business owner. Below are the different chapters of bankruptcy for which business owners can file:
- Chapter 7 – Also known as liquidation of assets, Chapter 7 Bankruptcy is best suited for sole proprietorships and small businesses that do not have substantial assets. In cases involving this type of bankruptcy, the business will sell assets to pay outstanding debts.
- Chapter 11 – This chapter of the Bankruptcy Code supports the financial rehabilitation of a business via a strategic, organizational plan that enables a business to operate under the watchful eye of a court-appointed trustee. Further, Chapter 11 Bankruptcy is best suited for sole proprietorships, partnerships and corporations.
- Chapter 12 – This chapter of the Bankruptcy Code is designed to help family farmers and fisherman to repay their debts. Under this code, debtors propose a repayment plan involving installments that they must pay over a three-to-five-year time period.
- Chapter 13 – Also known as a wage earner’s plan, this chapter of the Bankruptcy Code allows businesses, like sole proprietorships, to reorganize their debts and file repayment plans with the court that detail how they will repay their debts.
When filing for any chapter of bankruptcy, it is essential to account for all debts and follow your specific plan closely or else risk the chance of having the court dismiss your case. If this action occurs, the business will not be protected by bankruptcy policies and can even be prosecuted on criminal grounds.
Contact Our Attorneys When Considering Business Bankruptcy
If your business is considering filing for bankruptcy, consider contacting our experienced business bankruptcy lawyers. Call us at (940) 387-3518, or contact us here to set up a consultation regarding your debt-relief options.