How To Declare Business Bankruptcy

female busines owner holds her head in hands in desperation over paperwork and tax declaration in a closed pub

Filing for business bankruptcy NY is full of rules — but also lots of legal tricks to soften the blow.

You can navigate filing bankruptcy in NY with Ursulova Law Offices, experienced, compassionate bankruptcy lawyers in Brooklyn, NY.

As soon as you realize your business is in trouble, it’s time to acquire legal counsel. This is because there are several pre-steps to filing a business Chapter 11 — but these steps also buy you time and provide you with the information you need to present when filing for business bankruptcy in NY.

Steps in Declaring Business Bankruptcy

Prior to actually declaring business bankruptcy, you should follow a specific pre-bankruptcy path. Your bankruptcy lawyer can help you ensure you take the proper steps and file the necessary paperwork to make the remainder of your bankruptcy process smoother. Steps involve the pre-bankruptcy process and then the actual bankruptcy filing. To begin, you should:

crisis and bankruptcy

Reorganize assets: Prior to filing for business bankruptcy, you should evaluate and reorganize your assets. Streamline and optimize your business with the goal of recovering (or preparing for bankruptcy if you know you’re already headed there). This can involve hiring freezes, salary freezes, staff cuts, and eliminating unnecessary software. You can also jettison underperforming departments, services, and products.

woman set aside money, papers, her glasses and using calculator on the white wooden table

Liquidate assets: Following your reorganization, it’s time to get a fair assessment of your assets and sell them to recover as much money as possible. It’s important to enlist a lawyer to help you document all necessary assets, their values, and their sale prices. Your attorney can also help you navigate the liquidation process.

your new house, real estate agent holding house key to his client after signing contract agreement

Pay attention to property: Most bankruptcies are handled the same throughout the country, but when it comes to property, the laws are New York-based, which means you’ll need lawyers accustomed to filing bankruptcy in NY.

handsome man putting signature on document while sitting together with his wife

Navigate relationships: You have existing relationships with customers, vendors, board members, and financial institutions. Perhaps you’ve promised your customers a service you can no longer provide due to bankruptcy; maybe you have a business loan through your business bank.

You could also owe an outstanding amount of money to one of your trusted vendors. This is a complex part of the process and your lawyer will guide you.

in the background stock of parcels with products ready for shipment

Manage stocks: The stock of your business is another complex matter. There are laws about when and whether you can sell prior to bankruptcy, and what might provide more value to your business as you close it down. Make sure you get the best financial advice from the team of attorneys at Ursulova Law Offices.

explaining conditions of a document with bad news to a couple of worried customers at office

Make the official filing: Your lawyer will assist you with the official bankruptcy filing.

Filing for a Brooklyn bankruptcy in business can be an emotional process for any business owner or partner. During bankruptcy, your legal fees are considered and woven into the bankruptcy process. You should focus on tying up business and getting emotional closure over the loss of your business, as well as breaking the news to the public and your connections, and retaining as many positive business relationships as you can.

How Can Ursulova Law Offices Help You?

You need experience and expertise, which is why you should call the best bankruptcy lawyer in Brooklyn: Ursulova Law Offices. Ursulova Law Offices specialize in business bankruptcy and understands the complex property rules in bankruptcy specific to the state of New York. Times are tough, but with the best Brooklyn bankruptcy lawyers on your side, you can close your business and file for bankruptcy with dignity, a secure timeline, and a communications strategy. Rest easy knowing Ursulova Law Offices has your back with business bankruptcy. Call us today to set up an appointment.

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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