However, business bankruptcy will help you eliminate or repay your debt. Although there are some financial consequences of filing for bankruptcy, it’s not necessarily a bad thing. Filing for bankruptcy can be a more strategic decision for you to streamline your debt and have a fresh start. The process and results of filing for bankruptcy vary depending on the type of bankruptcy.
As a business owner, you can file for Chapter 7, Chapter 11, and Chapter 13 business bankruptcy, depending on your situation and the type of company that you have. You can ask a reputable chapter 7 bankruptcy lawyer in Brooklyn, NY about your options.
Business Bankruptcy in a Gist
Bankruptcy generally is a legal process that happens when a person or business is unable to repay its debts. The bankruptcy is process is handled in federal court in its entirety. Also, any decisions that are made regarding the bankruptcy case are made by an appointed bankruptcy judge.
There are chapter 7 bankruptcy attorney brooklyn ny many reasons why business owners would want to file for bankruptcy, but generally, they decide to do so to get a fresh start. This is an opportunity to have debts that you cannot repay forgiven while your creditors still receive a level of repayment. When the bankruptcy proceeding ends, the business is relieved of the debt obligations that have been incurred before filing the bankruptcy.
Chapter 7 Bankruptcy: What You Should Know
This is the most common type of bankruptcy, which makes up to approximately 80 percent of consumer filings. Chapter 7 bankruptcy is available to consumers and all types of businesses, making it an option if you do not have the means to keep your business afloat and unable to pay off your debt.
When you file for bankruptcy, you will turn your business over to a trustee for an orderly liquidation. Business operations will cease and the court will liquidate all your business assets and pays what it can to your creditors.
After liquidating your assets and paying your creditors, your business will no longer have any remaining debts. Any lease obligations, utility bills, contracts, loans, credit card bills, overdue accounts, and other business debts will be paid to the extent that is possible by the bankruptcy trustee. On the other hand, business owners will only be released from their debt if they are not personally liable for the debts. chapter 7 bankruptcy lawyer brooklyn ny
Are you planning to file for a chapter 7 bankruptcy for your business in New York? Seek help from a chapter 7 bankruptcy lawyer in Brooklyn, NY to help you navigate through the complexities of a bankruptcy case.
Rosenberg Musso & Weiner L.L.P is a reputable law firm chapter 7 bankruptcy attorney brooklyn ny in Brooklyn, New York that can handle bankruptcy cases. We’ve helped numerous business owners in New York resolve their debts and start anew with their financial health. Talk to us to know more about how we can help you.