Business owners throughout the United States take great pride in their businesses, and will often do everything they can to make their business a success. Unfortunately, for many, there comes a time where their business does not perform as expected, and those business owners will often find themselves in debt as a result. Fortunately, even if your business is currently in debt, you may still have several options. One of those options is filing for Chapter 11 business bankruptcy. Though this may sound like a huge step, the truth is, this may be your best option going forward.
Essentially, Chapter 11 business bankruptcy will allow you to restructure your debt over a 5-year period while allowing you to keep your doors open, your business running, and your employees on staff. Furthermore, the second you file Chapter 11 business bankruptcy, all creditors will be prohibited from further collection activities, allowing you to continue a line of credit and more. As long as everything works out after 5 years, your business should become profitable once more. Please continue reading and speak with our knowledgeable Rockland County bankruptcy attorney to learn more about how our firm can help. Here are some of the questions you may have:
What happens when I file for Chapter 11 business bankruptcy?
The first step is hiring an attorney who will file a Bankruptcy Petition. This Petition contains a list of your business’s assets and liabilities, a financial statement, and a list of any outstanding contracts or leases. This will trigger an Automatic Stay, prohibiting all collection activities. You will then attend a 341 meeting, where you, your attorney, and certain creditors will work on a Reorganization Plan, which will generally entail restructuring debt, reducing overhead, and canceling burdensome contracts.
As long as the Bankruptcy Court approves your plan, the creditors vote in your favor, your business meets the standard of the Liquidation Analysis, and it is determined that Chapter 11 is in your best interest, you should be approved. The Liquidation Analysis, in a nutshell, is conducted to ensure that with the payment, your creditors will receive a better, though minimal payment of the debt owed to them, on the condition that your company can remain open. This is because in most cases, creditors would rather receive at least a portion of the debt owed to them as opposed to having your business go under and them receiving 0 payment. If you have any further questions, give us a call today.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represent clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.