If you are a business owner but are in debt, there is a good chance you may qualify for Chapter 11 business bankruptcy. Chapter 11 business bankruptcy allows you essentially to restructure your debt over a 5-year plan, all while keeping your business running and employees on staff. With a business bankruptcy, creditor activities will stop, you may continue a line of credit, and more. As long as all goes as planned, your business will become profitable once more. To learn more about business bankruptcy, read on and reach out to our experienced Rockland County bankruptcy attorney. Here are some of the questions you may have:
What is the bankruptcy process like?
First, your attorney will file a Bankruptcy Petition. This includes a financial statement, a list of your business’s assets, a list of your business’s liabilities, and a statement of any outstanding contracts or leases. From here, filing from bankruptcy will trigger an Automatic Stay, which will prohibit creditors and debt collectors from all collection activities. Next, you will attend what is known as the meeting of creditors, where you, your attorney, and your largest creditors will discuss your Reorganization Plan. The primary function of this plan is to simply cancel burdensome contracts, restructure debt, and reduce overhead.
Finally, the Bankruptcy Court will have to approve your plan, and the creditors must vote on it. Your plan should be approved as long as it is in your business’s best interest, and meets the legal standard of the “Liquidation Analysis.” Simply, put, the analysis ensures that with the payment, your creditors will receive a better, albeit minimal payment of their debt, as opposed to your company going out of business and the creditors receiving nothing.
If you have any additional questions about how business bankruptcy may be right for you, please do not hesitate to give our experienced Rockland County bankruptcy attorney a call today. We have helped countless individuals over the years, and we are ready to do the same for you.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represents 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.