Bankruptcy is a federal, court-supervised procedure that gives individuals and businesses an opportunity for a “fresh start.”
Businesses bankruptcy offers financially struggling businesses a solution through two primary avenues—business liquidation or business reorganization.
Business liquidation is done through a Chapter 7 bankruptcy petition and usually signals the conclusion of the business. Business reorganization is accomplished through a Chapter 11 bankruptcy proceeding and is best designed for businesses that plan to continue operating and could return to profitability upon restructuring. If you are a sole proprietorship, you may be eligible to reorganize under a Chapter 13 bankruptcy proceeding.
Business owners should consult with a competent bankruptcy attorney before deciding which avenue of bankruptcy to pursue. On this website you will find a list of experienced business bankruptcy law firms that can help you determine the best fresh start option for your business.
For more information, please contact one of our business bankruptcy law firms.