Which Chapter of Bankruptcy Should My Business File?
A business declares itself as insolvent, or unable to pay all of the debts it owes, when it files for bankruptcy. There are various forms of insolvency for business. Brooklyn bankruptcy lawyers such as those at Ursulova Law Offices can help you determine the best option for your company.
What are the forms of bankruptcy?
Bankruptcy for business centrally comes in three forms:
- Chapter 7 Bankruptcy
- Chapter 11 Bankruptcy
- Chapter 13 Bankruptcy
Chapter 13 bankruptcy is typically reserved for personal finances. Sole proprietorships, however, may also take advantage of this option. A good bankruptcy law firm in Brighton Beach can help you understand the details of how a Chapter 13 bankruptcy may be right for you if you are a sole proprietorship business.
More about Chapter 13 bankruptcy
Chapter 13 bankruptcy is sometimes referenced as a repayment plan. This type of insolvency allows the individual to keep his possessions while settling the debt that he owes through a payment plan established by the court. The amount that you pay in a Chapter 13 bankruptcy payment plan depends on a number of factors, which include your monthly income as well as your possessions.
Chapter 7 and Chapter 11 Bankruptcies
Chapter 7 bankruptcy involves the liquidation of assets, which typically means that the individual sells his possessions to pay his debt. It is in the best interest of the applicant to seek the services of a bankruptcy law firm in Brighton Beach if he is considering Chapter 7 insolvency as the process is quite arduous.
Searching for Brooklyn bankruptcy lawyers to handle a Chapter 11 bankruptcy is also necessary. This form of insolvency is reserved for businesses and involves reorganizing the company to meet financial obligations going forward.
Ursulova Law Offices can help with all forms of bankruptcy. Call today to schedule a consultation!