If a business has a realistic chance of truing around and being viable, Chapter 11 may be the way to go. Under Chapter 11, the business is temporarily overseen by a court-appointed trustee. In addition, some of the debt may be discharged to give the business a chance of success.
Chapter 12 allows "family farmers" and "family fisherman" to avoid liquidation and foreclosure by restructuring their debt. Chapter 12 always for some relaxed ways to reorganize under its rules.
Chapter 7 business bankruptcy may be the best choice when the business has no viable future. Chapter 7 is typically used when the debts of the business are so overwhelming that restructuring them is not feasible. Chapter 7 bankruptcy can be used for sole proprietorships, partnerships, or corporations.
There may be other options open to businesses who have fallen on hard times. The key is to act as quickly as possible when finances start falling behind. We can help.
We work with our Business and Commercial customers to ensure they are protected when a debtor files bankruptcy. If you have a company or person who owes you money or has filed bankruptcy, call us to protect any rights your business may have.
