Commercial Bankruptcy Attorney in New City, New York
Under the bankruptcy code, a debtor has the legal means to better one’s financial situation. When the debtor is a business, the road to financial recovery is more complicated as many companies hold the future of its employees. For a business owner, choosing between Chapter 7 and Chapter 11 bankruptcy is a weighty decision that deserves the attention of an experienced attorney. Koplen Law has been a legal resource for businesses across the Lower Hudson Valley for decades. When facing such a significant legal matter, it is important to make informed, educated decisions with the help of a knowledgeable attorney. For a consultation with an experienced bankruptcy attorney, contact Koplen Law.
Business bankruptcy options
If your business is having trouble keeping up with the bills and debt is growing, it is important to discuss your legal situation with an experienced bankruptcy attorney. Our firm can help you decide if Bankruptcy is something to consider. Chapter 7 and 11 are used for different financial situations. Knowing which Chapter best applies is important, especially if you have employees. Our firm is ready to assess your situation and guide you through your options.
Chapter 7 Business Bankruptcy
Chapter 7 bankruptcy liquidates a business in order to pay as much debt as possible. When successful, a business owner can walk away with a clean slate, free of the remaining unsecured debts. Unfortunately, Chapter 7 bankruptcy also usually ends with a business closing. Chapter 7 may be the best option for your business if:
- The business’s debts are worth more than the business’s assets
- The business has little to no potential for profit
- The business offers a redundant service or product
- Debt restructuring is not practical
Chapter 11 Business Bankruptcy
Chapter 11 Bankruptcy is another option for businesses. For businesses with assets worth more than its outstanding debts, Chapter 11 can help restructure debts and contracts to keep the doors open, the staff employed, and, hopefully, one day become profitable once again. This Chapter is a reorganization plan. With the help of an experienced bankruptcy attorney, the business will develop a plan to restructure debt, cancel arduous contracts, and generally reduce overhead. The plan should pay off a portion of the debt over a five-year period. If the plan is approved by the Bankruptcy Court and meets the Liquidation Analysis standard, the business can continue operations and chip away at the debt over time, keeping the doors open and the staff employed.
If you are a business owner, it is important to consider all options for debt relief. Bankruptcy is not your only option. For some, filing for bankruptcy is a necessity. For others, it is important to consider the alternatives. Through a process called business debt restructuring, a business can privately renegotiate outstanding debt. Creditors prefer business debt restructuring because they have more control over the results than if a business filed. With the right attorney, your business may be able to recover without the need for bankruptcy, improving liquidity and profitability. Koplen Law has significant experience helping clients through the business debt restructuring process.
Contact a Rockland County commercial bankruptcy attorney
Making significant legal and financial decisions about a business can be stressful. These uncertain times deserve a compassionate, yet effective helping hand. With so much at stake, it is important to discuss your legal matter with an experienced attorney. Koplen Law has decades of experienced helping businesses of all sizes get back on track. Though bankruptcy is on the table, it is not the only option. Contact our firm to take the first step towards financial recovery. Contact Koplen Law today.