Federal Bankruptcy Law creates a number of avenues or chapters of Bankruptcy that can be used to solve your business problems. While out of Court negotiations can work, some businesses need the stronger protections that are offered by bankruptcy reorganizations. Understanding what’s correct for your particular business problem requires specialized legal counsel with the experience gathered from decades of legal solutions to business financial problems. One size does not fit all, and your business deserves the best legal counsel available.
In addition to negotiated resolutions and appropriate restarts for troubled businesses, various chapters of bankruptcy can be customized to reorganize your business into profit and recovery.
What Can Different Bankruptcy Chapters Do For My Business?
The basic chapters of bankruptcy law are Chapter 7, Chapter 11 and Chapter 13. Chapter 7 and Chapter 13 can relieve or restructure all forms of personal debt as a tool to restructuring business obligations that have been signed personally. Nearly all business debt comes from personal obligations and signature debt that can be remedied under Chapter 7 or Chapter 13 filings.
Chapter 11 is the major bankruptcy chapter for business reorganizations. It allows for the alteration of all forms of business obligations, including:
- Vendor obligations for trade debt and supplies
- Business loans and credit lines, both secured and unsecured
- Priority debt such as taxes to local, state and federal taxing authorities
- It stops all lawsuits, seizures, levies or collection actions against your company
- It prioritizes critical business debt over less important business debt obligations.
Chapter 11 provides an immediate stop or automatic stay to all collection actions against your LLC, corporation or unincorporated business while the business remains in the control of its owners and operators until a Plan of Reorganization can be provided for the company’s financial future. Chapter 11 is a federal protection that contains numerous powerful legal provisions to assure that solid businesses can overcome temporary problems and emerge as healthy new businesses capable of making dividends to creditors and future profitability for owners, customers and vendors.
Chapter 11 is a powerful tool for business recovery and requires the team-like assistance of an experienced and sophisticated business turnaround lawyer. At the Law Offices of Neil Crane, we’ve successfully reorganized hundreds of Connecticut businesses through preparedness, due diligence and a 35-year history of dedication to small business recoveries.
Contact Our Small Business Bankruptcy Attorneys to Discuss Chapter 11
Call us and ask for references. We’ve got years of experience in successfully helping small businesses. Contact our Connecticut Chapter 11 reorganization attorneys to arrange a free consultation. Please do not hesitate to call us today at 203-230-2233. Because of our commitment to you, our law firm does not use voice mail; you will always speak to a live person when you call.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.