Commercial Bankruptcy Attorneys

Commercial Bankruptcy Attorneys

Commercial bankruptcy attorneys are experienced lawyers who help businesses to file bankruptcy under Chapter 11. This allows the business to pay back at least part of their debt over a three to five year period. The business is permitted to continue to operate as normal during the bankruptcy process in order to provide the funds needed to pay off the creditors listed in the bankruptcy filing. When choosing commercial bankruptcy attorneys, selecting those with experience in filing Chapter 11 is important in protecting personal and exempt business property from being liquidated.

Understanding Chapter 11

A Chapter 11 bankruptcy is very similar to a Chapter 13 for consumers. It allows you to pay back outstanding bills over a period of time. This reduces the monthly debt that you may have now and will help you to restructure the financial plan of your business for the future. Businesses can also liquidate their business holdings and assets to help them pay off their creditors over a specified period of time. Chapter 11 bankruptcies are a bit complicated so choosing experienced commercial bankruptcy attorneys is crucial. Your attorney should be able to answer any questions that you have about the filing and discharge process as well as to advise you on the best path. You should understand that a Chapter 11 does not discharge the debt of your business. It will however grant an automatic stay which will stop any creditors that you may have from harassing you or trying to collect, repossess or foreclose on any business property until the bankruptcy process is completed. During the automatic stay commercial bankruptcy attorneys will help their clients to create plans that will allow them to eliminate their debt and ultimately save their businesses.

What to Expect During the Bankruptcy Process

Understand that there will be loads of paperwork that you will need to read and sign. This is yet another reason that commercial bankruptcy attorneys need experience and knowledge of the process in order to help you to properly fill out and file all required paperwork. You will need to meet with your attorney as well as your board of trustees and financial advisors if applicable and formulate a plan to determine if your business can and should be saved. You can use this time to reorganize your financial strategies and make any changes within your business that could help you to pay back your creditors on time. If this is a feasible solution then a Chapter 11 is your best bet. If you simply will not be able to come up with the means of paying back your creditors then you may want to consider a complete liquidation under Chapter 7. Again, an experienced attorney should be able to help you to determine which process will provide you with the most benefits. Realize that if you file a Chapter 7 then your business will be completely liquidated. If you are filing a Chapter 11 then you will need to work out a debt management plan that will show what you can afford to pay to each of your creditors over the next three to five years in order to eliminate that debt.

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