Branford Small Business Bankruptcy Lawyer

Are you looking for a small business bankruptcy lawyer in Branford, CT?

At The Law Offices of Neil Crane, we have a small business bankruptcy practice built on 43 years of client representation.

If your company can no longer meet its payroll, rent, or loan payments, the next decisions affect both the business and your personal finances. Our Branford, CT small business bankruptcy lawyer evaluates whether the business can be reorganized or should close, and addresses the debts you guaranteed personally as part of the same plan.

Business owners across Connecticut have relied on The Law Offices of Neil Crane for 43 years. There is no charge for the initial consultation, and you can reach our office to schedule a review of the company’s obligations.

Small Business Bankruptcy Lawyer Branford, CT

Small business bankruptcy covers the options available when a company’s debts exceed what its revenue can support. Those options include reorganizing under Chapter 11 or Chapter 13, liquidating under Chapter 7, and negotiating with creditors outside of court. A small business bankruptcy lawyer in Branford advises the owner on each route and on the separate question of personal liability.

Connecticut had 381,129 small businesses in 2022, representing 99.4 percent of all businesses in the state and 48.1 percent of its employees, according to the SBA Office of Advocacy. Each one has its own mix of lenders, landlords, vendors, and tax obligations.

Types of Small Business Bankruptcy Cases We Handle in Branford

Business financial problems rarely involve a single creditor. A bank loan, an equipment lease, and unpaid sales tax may all come due in the same quarter, and the right solution addresses each of them. As a small business bankruptcy attorney in Branford, CT, we represent owners in the following matters.

• Chapter 11 reorganization. Chapter 11 allows a company to keep operating while it restructures its debts under a court-approved plan. Qualifying small businesses may use Subchapter V, a streamlined form of Chapter 11 with lower administrative costs.
• Chapter 7 bankruptcy. A business that cannot continue may liquidate through a trustee. Owners with personal liability for company debts often file their own Chapter 7 at the same time.
• Chapter 13 bankruptcy. Sole proprietors with regular income can reorganize business and household debts together in a single plan while the business keeps operating.
• Personal guarantees. Lenders and landlords routinely require owners to sign guarantees, which makes the owner personally liable if the company defaults. We address the guarantee alongside the underlying obligation.
• Tax debt. Unpaid payroll withholding and sales tax create business obligations to the IRS and the Connecticut Department of Revenue Services that follow the responsible owner. We negotiate installment agreements and evaluate which tax debts bankruptcy can reach.
• Credit card debt. Company cards that an owner signed for personally are the owner’s liability as well as the business’s. We resolve those balances through negotiation or as part of a filing.
• Commercial lease defaults. Bankruptcy gives a business the ability to keep a lease it needs or reject one it cannot afford. Outside bankruptcy, we negotiate surrender and payment terms with the landlord.
• Out-of-court workouts. Some companies can avoid a filing entirely through agreements with lenders and vendors. We negotiate restructured payment terms and settle vendor balances outside of court.

Why Choose The Law Offices of Neil Crane as My Small Business Bankruptcy Lawyer in Branford, CT?

Representation for the Owner and the Business Together

Neil R. Crane has practiced bankruptcy law in Connecticut since 1983. His practice includes small business bankruptcy, Chapter 11 reorganization, tax law, and mortgage modification. That combination is relevant to owners. A failing business usually brings tax exposure and personal guarantees along with its commercial debt.

His professional memberships follow the same business focus. They include the American Bankruptcy Institute, whose work extends to small business reorganization, and the Connecticut Bar Association’s Commercial Law and Bankruptcy Section. Our firm serves as both counsel to the company and the owner’s bankruptcy lawyer in Branford, CT, so a business filing and any personal filing are planned together.

Measured Results and Professional Standing

Peers, clients, and the press have recognized Mr. Crane’s work over more than four decades.

• More than 15,000 matters handled for individuals and small businesses
• Distinguished peer review ratings from Martindale-Hubbell, along with the 2020 Client Champion Award
• Frequent appearances in local, national, and international news coverage of the mortgage crisis

Understanding Small Business Bankruptcy Cases

What Are Important Aspects of a Small Business Bankruptcy Case?

Several issues determine how much protection a filing provides to the owner as well as the company.

• Entity type. A sole proprietor’s business debts are personal debts. An LLC or corporation is a separate legal person, and the entity’s protection in bankruptcy does not by itself resolve what the owner guaranteed.
• Responsible-person tax liability. Connecticut can hold owners and officers personally liable for unpaid sales and withholding taxes, and the Department of Revenue Services states that this responsible person liability is not discharged in personal bankruptcy.
• Timing. Payments to insiders, transfers of equipment, and the sale of assets shortly before a filing can be reviewed by a trustee. Those transactions should be discussed with counsel before they happen.
• Leases and contracts. A bankruptcy filing allows a business to decide which leases and contracts to keep and which to reject.
• Early warning signs. Relying on personal credit to cover payroll is among the warning signs that a company’s options are narrowing.

What Is The Small Business Bankruptcy Case Timeline?

When a Branford small business bankruptcy lawyer files a Subchapter V reorganization, the case generally proceeds through the stages below. A Chapter 7 liquidation is shorter, because the trustee sells the assets and closes the case.

• A review of the company’s finances and a decision on which chapter to file
• Filing of the petition, which triggers the automatic stay while the business continues to operate
• Appointment of a trustee by the U.S. Trustee Program, which names one in every Subchapter V case to monitor it and assist with the plan
• Filing of a plan that pays creditors from future business income over several years
• Confirmation of the plan by the court, followed by plan payments and a discharge at completion

Chapter 7, Chapter 11, and Chapter 13 for Small Businesses and What Qualifies

Eligibility depends on how the business is organized, the amount of its debt, and whether it can continue operating.

1. Chapter 7. Available to individuals and business entities. A corporation or LLC that liquidates under Chapter 7 does not receive a discharge. The case ends with its assets distributed to creditors.
2. Chapter 11. Available to businesses of any form and size. Subchapter V offers qualifying small businesses a faster process and a plan the owner can keep without creditor approval in some cases.
3. Chapter 13. Available only to individuals with regular income, including sole proprietors, within the chapter’s debt limits.
4. Out-of-court restructuring. Requires agreement from each creditor involved, which makes it practical only when the number of lenders and vendors is limited.

Whether the owner should also file a personal bankruptcy case is decided at the same time as the choice of chapter for the business.

What Should You Bring to Your Small Business Bankruptcy Consultation?

The company’s financial records and the owner’s personal obligations both bear on the recommendation.

1. Profit-and-loss statements and bank statements for the last several months
2. A list of creditors, with copies of loan agreements, leases, and any personal guarantees
3. Business and personal tax returns for the last two years, along with any IRS or DRS notices
4. Formation documents, such as articles of organization or an operating agreement

The consultation is free. From those documents, we can give you a direct opinion on whether the business can be reorganized or should be closed, and what either choice means for you personally.

District of Connecticut Bankruptcy Court and Local Resources

Branford businesses and their owners file in the New Haven division of the U.S. Bankruptcy Court, which, under the court’s filing rules, hears cases from New Haven and Middlesex Counties. A small business bankruptcy attorney in Branford also works with the state and town offices that handle a company’s records and taxes.

Closing or restructuring a Branford business typically involves the following offices.

• The Connecticut Secretary of the State accepts the filing that formally closes an LLC or corporation. Until it is filed, the entity remains active.
• The Branford Assessor, at Town Hall, 1019 Main Street, receives the annual business personal property declaration for equipment, furniture, and other business assets.
• The Branford Tax Collector collects the personal property tax on those assets, which remains owed whether the business continues or closes.

Reach Out to The Law Offices of Neil Crane to Schedule a Consultation

Contact us for a free consultation with our Branford small business bankruptcy lawyer before the company signs a forbearance agreement, closes its doors, or sells assets. The Law Offices of Neil Crane will review the company’s obligations and the guarantees you signed personally, then explain which course protects the business and which protects you. Consultations are scheduled by appointment.