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What options does one have in a business bankruptcy?

Michigan business owners take pride in their work in building a successful business. However, sometimes, certain measures must be taken in order to prevent a company from falling under. Bankruptcy is one such measure that many business owners choose to take in order to restructure their businesses and keep the company alive. With bankruptcy, there are many laws involved and business owners often have a number of options available to them.

Business bankruptcy can take the form of Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Each bankruptcy option has its own unique facets and knowing the differences can help business owners decide which options are best for them. It sometimes is a necessary first step to consult with an attorney before making such decisions, though. The initial consultation with an attorney may entail filling out an intake questionnaire and providing all necessary documentation. The business owner and the attorney then decide together whether or not bankruptcy is the right course of action.

If it is decided that bankruptcy makes the most sense, there are different paths that one can take. Chapter 7 involves liquidation of assets and is designed to completely wide out debts. Chapter 13, on the other hand, requires businesses to pay back debts over time with a repayment plan.

Many large businesses and some smaller ones go with the third option, Chapter 11. Chapter 11 is designed to reorganize a business with large debts. This requires businesses to devise a plan to increase profitability by cutting costs or pursuing new sources of income. What is right for one business may not be right for every business, however. To narrow down the best course of action, it is important to research all one's options for bankruptcy relief.

Source: FindLaw, "What to Expect: Filing Bankruptcy," Accessed March 3, 2015

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    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

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    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

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