Business Bankruptcy FAQs
Realistic Insights & Knowledgeable Responses.
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What is business bankruptcy?
Business bankruptcy allows companies facing financial hardship to restructure their debts or liquidate assets to resolve their obligations.
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What’s the difference between Chapter 7 and Chapter 11 bankruptcy for businesses?
Chapter 7 involves liquidating the business to pay creditors, while Chapter 11 allows businesses to reorganize and continue operating.
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Will filing for business bankruptcy stop lawsuits and creditor harassment?
Yes, filing for bankruptcy triggers an automatic stay that stops lawsuits and collection efforts immediately.
However, the debts do not necessarily go away. Contact us for a consult to discuss your options.
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Can my business continue to operate during bankruptcy?
Under Chapter 11, your business can continue operating while it restructures its debts.
However, under the Chapter 7, the business will effectively cease operations.
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How long does the business bankruptcy process take?
Chapter 11 can take several months to years depending on the complexity, while Chapter 7 is typically faster.
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Will I lose my business assets in bankruptcy?
Chapter 11 is designed to help you reorganize and protect your assets, while Chapter 7 involves liquidation of business assets.
Other debts may also survive. Contact us for a free consultation to discuss your debts.
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What are the costs associated with filing business bankruptcy?
Costs vary depending on the complexity of your case, including attorney fees and court costs.
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When should I consider business bankruptcy?
If your business is struggling to pay its debts or facing lawsuits, bankruptcy might offer the relief you need. Contact us to explore your options.
