Charlotte Business Bankruptcy Attorneys
At Robertson & Associates, our bankruptcy practice area focuses on assisting businesses with the tough decision of filing bankruptcy. We work alongside our clients as we navigate through either Chapter 7 or Chapter 13 proceedings.
Our Charlotte, North Carolina, firm provides individuals with assistance in filing for bankruptcy. Whether it is a Chapter 7 elimination of debt or a Chapter 13 debt consolidation, our firm will assist you in understanding your rights.
Unfortunately, good, hardworking people sometimes fall behind on the bills and accumulate unsustainable debt due to unforeseen circumstances. If you are in financial distress and considering whether bankruptcy is right for you, you are most likely worried about what the future holds.
Understanding Chapters 7, 11 And 13 Business Bankruptcies
When facing insurmountable financial difficulties, businesses have several options under the U.S. Bankruptcy Code: Chapter 7, Chapter 11 and Chapter 13. Each option serves different purposes and offers unique benefits.
- Chapter 7: Also called liquidation bankruptcy, Chapter 7 involves the sale of a business’s assets to pay off creditors. It is typically used when a company cannot continue operating and has no choice but to shut down. The process is relatively quick and results in the discharge of most debts.
- Chapter 11: A reorganization bankruptcy, Chapter 11 allows businesses to restructure debts while continuing to operate. It can be ideal for owners who need time to reorganize and become profitable again. The process can be complex but offers a chance to keep the business running.
- Chapter 13: Primarily for individuals, including sole proprietors, Chapter 13 involves developing a repayment plan over three to five years. It is often beneficial for small business owners who wish to restructure personal and business debts while retaining control of their operations.
Choosing the right type of bankruptcy is crucial for your company’s future.
Before And After Filing: Bankruptcy Process And Timeline
Like all bankruptcy filers, business owners must complete credit counseling before filing for bankruptcy and should gather necessary financial documents.
Once the petition is filed, an automatic stay goes into effect, halting all collection activities, lawsuits and wage garnishments. The business then works with a bankruptcy trustee to develop a repayment plan (Chapter 13) or liquidate assets (Chapter 7).
After filing, you must attend a meeting of creditors (or a 341 meeting), where the trustee and creditors can ask questions about your business’s financial situation.
The timeline for the bankruptcy process varies depending on the type of bankruptcy and the complexity of the case. Chapter 7 cases may take as few as four to six months, while Chapter 11 and Chapter 13 bankruptcies often take longer due to the need for reorganization and repayment plans.
Experienced Bankruptcy Guidance Starts Here
Financial challenges and debt can destroy all you have worked for – do not wait another day to seek help. We offer strategic and sophisticated representation to guide you through your business bankruptcy with care.
Do not be misinformed about your rights in bankruptcy. Let us help you navigate through these difficult times. Give our firm a call at 704-597-5774 or use our online form.