Why Filing Personal Bankruptcy may be Necessary?
The economic situation that we are currently faced with has made it very difficult for many businesses to keep their doors open. As a result, many business owners have been forced to consider other option. There are typically two reasons a business may consider filing for bankruptcy.
- 1. They need to permanently close their doors.
- 2. They need to restructure in an effort to keep doing business.
Making a decision such as this can be very difficult. However, it is important to realize that there are a few different options available to you. That is where they attorneys at the Law Office of Brian R. Lewis come in. They will help you navigate your way through your situation and help find the very best plan of action for you.
What Options Do I Have When Filing Bankruptcy?
Chapter 7 Bankruptcy
The closing of a business is handled by filing a Chapter 7 bankruptcy and is typically a very straight forward process. All assets and liabilities are accounted for and any assets available will be liquidated. From there, any of the net proceeds will be distributed to the creditors.
The major benefit of liquidating a business in bankruptcy is to allow for a more orderly and efficient handling of creditor’s claims without the need for the business owner having to spend substantial time and money to deal with the creditors one by one.
Chapter 11 Bankruptcy
Thousands of business each year restructure through Chapter 11 bankruptcy and are stronger for it as a result. Moving a business forward through bankruptcy does require some additional work and will come at a greater cost. However, in the end, this may just be what your business needs to get back on track.
There are many factors to take into consideration when deciding whether bankruptcy is the right choice for your business. That it is why it is important to have someone in your corner that knows the tax laws inside and out to help you make this important decision. Call the Law Office of Brian R. Lewis today for your free initial consultation.