It is not uncommon for a business to face difficult financial circumstances. Monthly outlays can quickly surpass a business’s revenue, especially when that business takes out a mortgage for a brick-and-mortar location. When these bills make it impossible to turn a profit, seeking protection through a declaration of bankruptcy may be your best option. For many businesses, a reorganization through a Chapter 11 filing could be the appropriate solution.
Consulting with a Spring Lake Heights Chapter 11 bankruptcy lawyer is the first step towards receiving this protection. The dedicated bankruptcy attorneys at Gillman Capone consult with businesses such as yours to evaluate your current financial situation, discuss possible methods to avoid bankruptcy (such as seeking tax breaks through the Qualified Opportunity Zone program), and preparing and filing a petition with the Court if a Chapter 11 bankruptcy remains the best choice.
Making the choice to file for bankruptcy will have disruptive consequences for any company. As a result, the first task of a Spring Lake Heights Chapter 11 bankruptcy attorney is to determine if filing for bankruptcy is the correct path moving forward.
Determining (1) if a Chapter 11 is the correct option, and (2) if it is determining the proper plan of reorganization, involves performing a complete analysis of a company’s finances. Filing for bankruptcy should always be a final refuge, and if other options are available, such as creative tax accounting through the Qualified Opportunity Zone program, we can guide a business through these alternatives.
A company that files for Chapter 11 protection is stating to the United States Bankruptcy Court that it is insolvent and is having difficulty in meeting its monthly expenses. For a company in this situation, the benefits of filing for Chapter 11 protection are immediate. Upon the filing of a petition under Chapter 11, the Bankruptcy Code provides for an automatic stay on all collection efforts. This stay can include delaying payments on a mortgage, as well as ceasing payments to other creditors who may have legitimate claims against the company.
Obtaining this automatic stay requires a company to submit a complete petition to the court. According to 11 United States Code § 521, this application includes a full set of financial disclosures. We can assist you in compiling this information, as well as take the lead in preparing and submitting comprehensive petitions for Chapter 11 bankruptcy protection to the appropriate court.
The ultimate goal of any bankruptcy case is to receive a discharge of debts. As applied to businesses, this can often mean an end to prohibitive mortgage payments and a clearing of vendor debts.
To achieve this valuable benefit, businesses must submit to a restructuring under court supervision. In exchange for being able to continue operations in the future, the court must approve a reorganization plan. This often includes the sale of some assets, the appointment of new board members, and other considerations. Thankfully, 11 United States Code § 1121(b) allows you the option of submitting a preferred plan for this reorganization to the court. You have 120 days of exclusivity, from the date of the filing of a petition, to file a plan with the Court. A Spring Lake Heights Chapter 11 bankruptcy lawyer can help form and submit these plans on your behalf.
If your business is facing financial difficulty that makes it impossible to foresee a future profit, filing for bankruptcy protection may be your best option. A Chapter 11 bankruptcy case can result in you continuing to do business in the future while restructuring and/or discharging your business debt. However, obtaining these benefits requires you to comply with a court-approved reorganization plan.
Filing for bankruptcy can be a daunting endeavor, especially if you are unrepresented. However, a Spring Lake Heights Chapter 11 bankruptcy lawyer can help guide you through this process. Our help includes evaluating whether a bankruptcy filing is the best decision and, if so, gathering the information needed to file a petition and obtain an immediate stay on your creditor’s collection efforts. Give us a call for a free consultation to see how we can put our 25+ years of experience to work for you.
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