There are few things more stressful for a business owner then accruing debt. That being said, if you are a struggling business owner, you may have certain options available to you. One of those options is known as Chapter 7 business bankruptcy. However, before making the move to Chapter 7, you should hire an experienced Rockland County business bankruptcy attorney to see if Chapter 11 may be better for your particular situation. Please continue reading to learn more about Chapter 7 business bankruptcy in New York State and how it may help you.
What is Chapter 7 bankruptcy?
Chapter 7 business bankruptcy is also known as liquidation bankruptcy. When you file Chapter 7 business bankruptcy, you will liquidate your business to pay off as much debt as you possibly can. As long as everything goes smoothly, you should be allowed to completely walk away from all remaining unsecured debts accrued both by your business and even personally signed debt.
Should I file for Chapter 7 business bankruptcy?
If your business exhibits any of the following characterists, Chapter 7 business bankruptcy may help you to a fresh start:
- If your business has little or no potential for profit
- If your business offers a redundant or commonplace product or service
- Debt restructuring is not an option because of extensive debts
- Your business has debts are worth more than your business’s assets
What is the Chapter 7 business bankruptcy process like?
First, you will file a petition with the bankruptcy court. You will also have to submit the following information about your business:
- Current income and expenditures
- Executory contracts and leases
- A financial statement
- You will also have to provide the trustee with your latest tax return
From here, once you file Chapter 7 business bankruptcy, an automatic stay will be issued, which stops creditors from all collection activities. Next, you will have to attend the meeting of creditors, which may seem intimidating, but with the assistance of an experienced Rockland County business bankruptcy attorney, it does not have to be. The meeting of creditors is essentially where your creditors and the trustee will ask certain questions to better understand your business, your debts, and whether Chapter 7 is best for you. As long as all goes as planned, your business will be liquidated, assets will be sold to pay your creditors, and all your remaining unsecured debt should be discharged, or eliminated.
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.