The Bankruptcy Code provides relief to those facing financial hardship. Just like consumers, businesses are permitted to file for bankruptcy. Of course, businesses have far more complicated financial situations than individual consumers do. Businesses often file for Chapter 7 or Chapter 11 bankruptcy to get the relief they need. Regardless of which choice is made, it is essential to retain the services of an experienced bankruptcy attorney. Detzky, Hunter & DeFillippo, LLC has the experience your business needs to make informed decisions about the future. If your business is struggling to stay afloat, it may be time to talk to a bankruptcy attorney. No need to stress. You are in good hands. Contact Detzky, Hunter & DeFillippo, LLC today to schedule a consultation.
Options for Business Bankruptcy
Keeping a business afloat can be hard. When bills and debt seem to be growing more than profits are, a business owner may be unsure of what to do. It may be beneficial to consult with an experienced bankruptcy attorney at Detzky, Hunter & DeFillippo, LLC. Our firm can help determine whether bankruptcy is the right choice. If it is, we can help you decide which form of bankruptcy best applies to the situation. If you are unsure of whether Chapter 7 or Chapter 11 is right for your business, contact Detzky, Hunter & DeFillippo, LLC today.
Chapter 7 Bankruptcy for Businesses
When a business is facing financial hardship or is possibly going out of business, the owner may want to consider filing for business bankruptcy. Chapter 7 bankruptcy results in a liquidation of the business in an effort to pay off as much debt as possible. A Chapter 7 bankruptcy may be best when:
- The business has a very slim chance of making a profit
- It is not practical to pursue debt restructuring
- The business offers a redundant product or service
- The business’ debt is greater than the value of its assets
Chapter 7 bankruptcy does not provide discharge or exemptions. The trustee will often sell all assets and close the business in order to satisfy creditors. In some cases, the trustee will even run the business for a limited time to enhance the liquidation. Business owners that wish to stay in business may want to consider Chapter 11 bankruptcy.
Chapter 11 Business Bankruptcy
When a business is facing financial hardship but wishes to stay open, Chapter 11 may be the owner’s best option. This option allows businesses to come up with a debt restructuring plan while keeping the business open. The business owner will be able to keep the staff employed and doors open to continue bringing in revenue while paying off debt. An experienced bankruptcy attorney can provide a debt restructuring plan for the business while looking for ways to reduce overhead costs. These repayment plans typically last for five years. This debt restructuring plan must meet the Liquidation Analysis standard and be approved by the Bankruptcy Court in order to allow the business to remain open. The legal team at Detzky, Hunter & DeFillippo, LLC can help determine if Chapter 11 bankruptcy is best for your business.
Contact a Monmouth County Business Bankruptcy Attorney
Owning a business is very stressful, especially knowing that a business owner holds the future of their employees in their hands. When difficult financial situations make for uncertain times, it is important to consult with professionals. The legal team at Detzky, Hunter & DeFillippo, LLC is here to help. Contact us today to discuss your options.