Advice from a Bankruptcy Lawyer
Individuals sometimes need to file for bankruptcy to get a new start in life. Businesses occasionally need to do the same to remain solvent. There are several laws that apply so that these businesses ...
Some small businesses are not able to cope with a tough economy and end up struggling financially. In these situations, both business and individual alike will have creditors calling and banks unwilling to lend to them. There are two options available, Chapter 7, in which you will need to close your business after your assets have been sold, and Chapter 11, in which you can keep your business open while you go through the restructuring process.
Unlike individual bankruptcy where you can represent yourself, a business must hire a bankruptcy lawyer if it is struggling enough to consider insolvency. Your attorney will help you proceed through the difficult process as it is more complicated due to the financial and legal issues surrounding a business.
There are many similarities between business and personal bankruptcy. Both entities need to file a letter of intent so that creditors cannot collect until the case is resolved. After you have been to court, your lawyer will intercede for you before your creditors so that your assets can be sold and the reorganization of your business can begin. He will also help get your creditors paid on time.
One of the most important things that your bankruptcy lawyer can do for you is make arrangements with a trustee who will control all assets, so that you can have a new debt-free beginning. If your business is filing for Chapter 11, the lawyer will appoint a debtor in possession to help keep your business open while your case for reorganization is being reviewed and approved by the courts.
If you are considering bankruptcy for your business, review all your paperwork so that you can make sure that there are no liens or lawsuits against the property so that your business reputation is not hurt.
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A Detroit bankruptcy lawyer can help dig you out of an unthinkable situation. Learn more at: http://www.go4bankruptcy.com.