Business Chapter 7 and 11 Bankruptcies and
Business Chapter 7
Although not as common as individual Chapter 7 cases, businesses can file under Chapter 7 as well. The main difference is that a business debtor will not receive a discharge in a Chapter 7 case. The case is used as a means to sell assets in an efficient and transparent manner and distribute the money to the creditors of the business. If you run a business that is facing financial difficulty and are considering bankruptcy, contact me to discuss your options.
Business Chapter 11
Chapter 11 allows for the reorganization of business debts while a business continues to carry on routine operations. A Chapter 11 case may be an effective means of restructuring payments and reducing debt for your business. Secured loan payments and tax debts can be adjusted to allow for better monthly cash flow during the life of the Chapter 11 plan and the business may be able to discharge debt upon completion of the plan. Chapter 11 cases are complicated, I can help you determine whether Chapter 11 is a good option for your situation and guide you through the process.
Many times, bankruptcy may not be the answer for your businesses’ financial concerns. The business may be facing an immediate short-term issue that is better dealt with by working directly with the creditor or creditors to work out a resolution outside of the complexities and costs of the bankruptcy court. I have assisted numerous small businesses in restructuring financing agreements, short-term loans, and mortgages, allowing them to continue operations while addressing their financial burden. If bankruptcy is not right for your business, we will discuss what options may be available.