Declaring bankruptcy is not something that any company takes lightly, this is a very difficult and often painful decision that has long term consequences. Any company official who is considering bankruptcy as the solution to the problems would be wise to consult a reputable Scottsdale bankruptcy attorney, one who can help them through what will be a very complicated process.
Although there are a number of different roads to bankruptcy the two most popular for small to medium companies are Chapters 7, 11 and Chapter 13. Chapter 7 is filed when the company wishes to liquidate their assets and use the proceeds to repay the creditors to the maximum extent possible. Chapters 11 and 13 are somewhat similar; both are designed to allow the business to keep the assets and continue to function as usual while an attempt is made to settle the debts through a restructuring program which is developed by the bankrupt, the Scottsdale bankruptcy attorney and the bankruptcy court who must approve the reorganization plan.
It is a mind boggling statistic but each and every year there are about 1.6 million bankruptcies in the US. The bulk of business bankruptcies fall among small start-ups in their first three to four years of operation. Due to the complexities of business bankruptcies many bankruptcy attorneys in Scottsdale, AZ focus exclusively on this sector.
If the business decides to file Chapter 7 bankruptcy they cease trading and liquidate the company’s assets. During this period of time the ownership of the business is transferred to the Scottsdale bankruptcy attorney, the attorney is responsible for closing the business, disposing of the assets at the best possible price and dividing the cash between the creditors.
On the other hand if the company files for Chapter 11 bankruptcy they are allowed to keeping operating while they attempt to restructure and return to profitability. This type of bankruptcy takes place under the guidance of the court. If the company and the attorneys at Freeman Huber Law cannot develop a reorganization plan that meets acceptance by the court or the creditors the company is faced with either filing for Chapter 7 bankruptcy and liquidating or make an attempt to return to normal business and face the creditors, this will usually push the company into bankruptcy with no return.
If you or your company is facing the prospect of having to declare bankruptcy you will need to engage the services of a seasoned Scottsdale bankruptcy attorney. You are invited to discuss your situation with the Business Name
