Our Kansas City Bankruptcy Attorney Explains Business Bankruptcy
Filing for bankruptcy does not have to be the end of your company, in fact, in can be a fresh beginning. Although you should explore all of your options when deciding whether bankruptcy is the right choice for you, it is possible to get through a Chapter 11 bankruptcy and keep your company afloat. Saving your business can be a difficult process, and if you are considering how a bankruptcy may affect your company, learning more about the process may help your business become one of the many to emerge successfully from a Chapter 11 bankruptcy.
How Can Chapter 11 Allow My Company to Remain in Business?
Much of the appeal of Chapter 11 is that it can allow companies to stay in business while dealing with debt. Typically, Company officials continue to operate the company while following the rules required under the Bankruptcy Code. This is known as operating as a “debtor in possession,” and the “debtor-in-possession” has all the rights and powers of a bankruptcy trustee. Such operation of a company usually is with considerable guidance from the Company’s attorney. Typically, bankruptcy for a business does not involve a trustee, but if a debtor is dishonest, commits fraud or severely mismanages the Chapter 11 process, the bankruptcy court may appoint a trustee to manage the debtor’s assets and business.
Despite the lack of trustee management businesses have in Chapter 11 bankruptcy cases, a bankruptcy court does have control over a number of important decisions. Creditors and interested parties may express support or disapproval of actions that require bankruptcy court endorsement. The bankruptcy court will consider these opinions when granting the right to proceed with an action. Some actions that require approval include selling assets, entering or altering contracts with vendors or other parties as well as expanding or closing the business.
An attorney can tell you what to expect in a Chapter 11 business bankruptcy case. Additionally, if you are the sole proprietor for your business, you may have other options when dealing with debt, such as filing for Chapter 13 bankruptcy.
What is the Best Bankruptcy Option If I Want to Close My Business?
If you decide to settle your debts and close your business, Chapter 7 bankruptcy may be your best option. Chapter 7 will liquidate your business’ assets to pay the debts of your company. However, a business will not receive a Chapter 7 discharge of debts, as companies are not entitled to Chapter 7 bankruptcy discharges. If your company has available business assets, this can be a quick and easy way to liquidate and end your business. Talk to a bankruptcy lawyer to learn more about this process.
I Need Attorney Advice About Business Bankruptcy
At The Sader Law Firm, our Kansas City bankruptcy lawyers work one-on-one with those struggling with debt. We are able to advise both businesses and individuals about all types of bankruptcy. Our firm provides prompt service and keeps you informed throughout the bankruptcy process, so that you can begin moving on with your life. Call our office today for free attorney advice about bankruptcy.