Corporate Chapter 7 Bankruptcy
Bankruptcy has become an increasingly common solution to financial problems for many small businesses.. The first two questions to ask are:
Is the company eligible to file for bankruptcy?
Which form of bankruptcy should I file for and what do they mean?
These questions are best answered by a seasoned bankruptcy attorney. At Schottler & Associates, we have helped many small businesses and their principals find solutions to their financial problems. While bankruptcy can be a highly effective resolution, it is not the only option and at your initial consultation, we will explore all the options to find the right one for you.
What is Chapter 7 Bankruptcy for Businesses?
In this usage, the word "Chapter" simply refers to a part of legal code dealing with such filings, just like a chapter in a book. This sets apart specific content from other content. Both individuals and businesses can file for Chapter 7.
If you file Chapter 7 bankruptcy for your small business, the company will cease operations and will be effectively dissolved. This type of bankruptcy is generally used where the debts/obligations of the company have overwhelmed its ability to pay and ongoing operations are not possible.
In a Chapter 7 situation, the Court will conduct an orderly liquidation of the remaining assets of the company (if any) though a bankruptcy trustee. Creditors will be satisfied from the liquidation by order of priority at no cost to any shareholders of the business. Though the company will not receive a Discharge in bankruptcy, it will effectively no longer exist after the court and trustee conclude their liquidation process.
Find out now if you qualify to eliminate much of your unsecured debt through a bankruptcy filing. Contact Schottler & Associates for a full review of your situation and an explanation of your options.