Company Bankruptcy Guide
Company Bankruptcy
We would like to provide some helpful information on company bankruptcy for our clients and prospects. This information is invaluable and normally we charge $275 an hour for this company bankruptcy advice. Please enjoy our gift!
Types of Company Bankruptcy
Chapter 7 Company Bankruptcy – This is a liquidation. If you just want to shut the doors, this is your best alternative.
Chapter 11 Company Bankruptcy – This is a reorganization. Your firm continues to run with protection from your creditors while you negotiate with your creditors on a restructured (reorganized) balance sheet. Because the debt is usually so high, the creditors end up owning the common stock of the reorganized firm.
Chapter 13 Company Bankruptcy - This is bankruptcy for individuals, but does make sense for sole proprietorships.
Preparation for Company Bankruptcy
- Decide if company bankruptcy is the right thing to do for your firm. See company bankruptcy alternatives for an article how to avoid filing.
- Gather the names of reputable bankruptcy attorneys.
- Interview attorneys and select the one you trust the most.
- Gather financial documents. You will need a list of all your creditors including contact information, a listing of debts, a listing of assets and a current financial statement on a monthly and yearly basis.
- Work with your lawyer to prepare court documents.
- Get advice from your lawyer on how to handle the 341 meeting where you will be asked questions under oath by your creditors.
- After the early phases of the bankruptcy, work with your attorney to accept and reject contracts allowed by the Chapter 11 code and craft a plan of reorganization.
Best wishes. We hope that this was helpful.
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