Ganje Law Office

Posts Tagged ‘Corporate Bankruptcy’

Bankruptcy Lawyers, Filing for Bankruptcy, Chapter 7 Bankruptcy, Corporate Bankruptcy, Personal Bankruptcy

If you had an issue with a water leak, you’d call a plumber. If you needed construction work done, you’d consult a contractor. Dealing with bankruptcy should be no different: business owners need the expert help of bankruptcy lawyers. Filing a bankruptcy is not easy and merits seeking help from legal counsel with experience in this area.

We are living in tough economic times and the current economic climate is a difficult storm for a small business to weather. If you are facing financial challenges with a lack of liquidity of assets or less profit than you anticipated, the dreaded idea of filing for bankruptcy may have come up. Filing chapter 7 bankruptcy, or liquidating your business to pay off creditors, is certainly not a proceeding to enter into lightly and should always be done under the advisement of an experienced chapter 7 bankruptcy lawyer. Many businesses find that consultations with expert bankruptcy lawyers can lead to discovering alternatives to bankruptcy, or at the very least help to recover the maximum possible assets from the bankruptcy proceedings.

If you have recently asked yourself or your business associates any permutation of the question “Should I file bankruptcy?”, then you need to at least have an initial consultation with an attorney. When selecting a lawyer, you should seek counsel from one who specializes in proceedings like chapter 7 bankruptcy, not a personal bankruptcy lawyer unless they specialize in both personal and corporate bankruptcy. It may seem counterintuitive to hire a lawyer when you are facing financial troubles, but due to the complex nature of the laws surrounding bankruptcy and bankruptcy alternatives, it is prudent to seek expert counsel. You might be surprised to find out that investors and creditors typically support the decision to seek legal help and explore bankruptcy alternatives. From their perspective, finding the best possible solution that results in either the business being able to continue and hopefully return to profitability or recovering the maximum assets from the loss is in their best interest as well as yours. If your business is in crisis do not delay in finding a bankruptcy lawyer in your area to help explore your options.

Bankruptcy lawyers are like doctors for your small business: if the financial heart of your business is having trouble, you need to contact one without delay. Do not wait until you are out of options for the financial troubles your business is in–that won’t help you or your creditors.

Bankruptcy comes complete with so much jargon and confusion that working with bankruptcy lawyers is the logical step for a business in trouble to take. From figuring out what Chapter 7, Chapter 11, and Chapter 13 mean and whether they are options for your business to discussing whether financial restructuring or a turnaround would be viable options for your business, qualified bankruptcy attorneys can provide you with the information you need to make educated decisions about your company’s future. It is a common mistake that businesses make to wait and see if their financial situation will just get better… Often the best way to avoid filing a bankruptcy is to contact a bankruptcy lawyer at the first sign of
trouble. Consulting with a bankruptcy lawyer early on means that you may be able to find a solution that will keep your business open and working towards profitability though restructuring or Chapter 11 bankruptcy filing, rather than having to liquidate everything. Many businesses that consult with a lawyer early on about bankruptcy protection are able to avoid corporate bankruptcy proceedings; however, acting early is imperative in attempting to save a business.

Avoiding specialized personal bankruptcy lawyers and seeking to consult with a firm that specializes in corporate bankruptcy gives your business access to a wealth of experience and knowledge of complex legal options. Lawyers experienced in corporation bankruptcy are able to identify issues like if your business qualifies for Chapter 12 bankruptcy (for family farms or fisheries), or Chapter 13 (for sole proprietor small businesses). Not only can a corporate bankruptcy lawyer discuss these options with you, they are pros at dealing with the massive amount of paperwork necessary for the business restructuring or bankruptcy process. It is essential that all of the forms and a paperwork surrounding a turnaround or bankruptcy is done thoroughly and accurately and an experienced lawyer is the person to help! Contact bankruptcy lawyers in your local area and find the help you need without delay–waiting will only exacerbate the financial strain you are under.

Bankruptcy is a term we hear all the time but don’t necessarily understand. We’ve put together a brief overview of business bankruptcy in the US to help you understand the meaning and consequences of corporate bankruptcy in today’s down market.

With today’s tough economic situation, we’ve been hearing more and more about business bankruptcies in the news. But what exactly is bankruptcy and what does it mean when a business says it’s filing for bankruptcy.

Bankruptcy is a legal filing that enables struggling businesses to resolve issues of insolvency. Generally caused by a lack of cash flow, filing a bankruptcy can be initiated by the business or by its creditors (called an involuntary bankruptcy). Once a bankruptcy case has been filed, the judicial system works to create a fair settlement between the business debtor and its creditors.

Most business bankruptcies fall into one of four categories, or types of filing:

• Chapter 7: Bankruptcy Liquidation—This type of bankruptcy dissolves the company, selling off its assets to pay all or part of its debts. Chapter 7 bankruptcy protection is generally utilized by companies with irresolvable cash flow or financial problems and by small, sole proprietorship businesses.
• Chapter 11: Bankruptcy Reorganization—This type of bankruptcy takes the corporation through a period of structural and financial reorganization with the goal of regaining profitability. Operations are typically streamlined to reduce costs, some assets can be sold off to satisfy creditors, and other changes are all options with this type of corporate bankruptcy. Chapter 11 bankruptcy filings are generally used by large and medium-sized corporations.
• Chapter 12 Bankruptcy: Bankruptcy for Family Farmers and Fishers—this specialized form of business bankruptcy is designed for family farming and fishing operations, and is used with less frequency than Chapter 7 and Chapter 11 bankruptcy.
• Chapter 13: Wage-Earner Bankruptcy—Frequently used in personal bankruptcy filings, this type of bankruptcy can also be used by sol proprietorship companies. Enabling them to repay debts over a set time period (usually three to five years), Chapter 13 bankruptcy allows the business owner to retain their assets.

If you’re considering filing for corporate bankruptcy, give us a call before making any final decisions. We can provide you with expert advice regarding the future of your company.

Corporate Bankruptcy Filing: What are the next steps?

The word “bankruptcy” gets tossed around a lot… But what does it actually mean and what happens after your company files a bankruptcy. In layman’s terms, bankruptcy is when your company has financial obligations and liabilities that exceed your assets, making you unable to pay your bills as they come due. Filing for bankruptcy is a judicial solution for the debtor—your company—to seek relief from your creditors. The courts will determine if you are unable to satisfy your debts and, if so, attempt to determine a fair way to satisfy your creditors.

Filing for bankruptcy is similar to any other lawsuit: a bankruptcy petition simply starts the process, without guaranteeing any outcome or resolution. However, unlike other legal proceedings, a bankruptcy filing immediately generates an automatic stay, also known as bankruptcy protection. This injunction stops creditors from taking additional action to attempt to collect on their debts until the bankruptcy case is resolved. This stay essentially gives your business temporary relief and time to develop a plan for debt resolution.

As your bankruptcy case proceeds, different creditors will be treated differently, but if or when the court declares your company bankrupt, the court will attempt to satisfy your financial obligations in an equitable and appropriate way.

Of course, just as every company is unique, every bankruptcy filing is different. Depending on the financial obligations, assets, and even structure of your business, your bankruptcy proceeding will unfold differently. Perhaps the most important question is whether to file a Chapter 7 bankruptcy or proceed with a Chapter 11 bankruptcy filing. Chapter 7  dissolves your business, liquefying assets to satisfy creditors. Chapter 11 involves reorganizing the business to regain solvency and profitability.

If you’re considering filing a business bankruptcy, now is the time to consult a professional bankruptcy lawyer like David Ganje. We can help determine the right course of action for your particular company, helping your business achieve the best outcome given the circumstances. There may be non-bankruptcy options available for resolving your business debts so call today!