If you are a business owner and you find yourself unable to pay off serious debt, there is a very good chance you are wondering about what your options are. Fortunately, there are several options on the table. One of those options is filing Chapter 7 business bankruptcy. Please continue reading and speak with our knowledgeable Rockland County business bankruptcy attorney to learn more about Chapter 7 business bankruptcy, whether it is the best fit for you, and how our firm can help you through every step of the process ahead. Here are some of the questions you may have:
What is Chapter 7 business bankruptcy?
Chapter 7 business bankruptcy, also known as liquidation bankruptcy, is a form of bankruptcy best suited for businesses that have little or no potential for profit. When you file Chapter 7 bankruptcy, your business will be liquidated, thereby paying off as much debt as possible. By the end of the process, you should be able to pay off all unsecured debts associated with your business.
Does my business qualify for Chapter 7 bankruptcy?
There are various situations in which Chapter 7 bankruptcy is best for businesses, including some of the following:
- Businesses that often redundant or commonplace goods or services
- Your debts are worth far more than your assets
- You have debts so high that debt restructuring is no longer an option
- As previously mentioned, if your business is not making a profit and has very little potential to make a profit, Chapter 7 bankruptcy may be right for you.
What happens when I file Chapter 7 business bankruptcy?
The first part of the process is filing a petition with the bankruptcy court, wherein you will submit various business-related documents, including your assets/liabilities, your current income and expenditures, your latest tax return, a financial statement, executory contracts and leases, and more. The moment you file Chapter 7 business bankruptcy, an automatic stay will be issued, which prohibits creditors from all further collection activities. You will then attend the Meeting of Creditors, along with your attorney and the bankruptcy trustee. As long as you have an experienced attorney at your side, you need not be intimidated by the meeting. At the meeting, creditors and the bankruptcy trustee will ask a series of questions to get a clearer picture of your business and whether you qualify for Chapter 7 bankruptcy. Finally, as long as the Bankruptcy Court approves, your business will be liquidated and its assets will be sold to pay off creditors, and from here, your remaining unsecured debt will be discharged.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.
