Bankruptcy And Alternatives For Businesses Facing Insolvency
Filing for business bankruptcy is a strategic move that requires skilled legal guidance. There are numerous debt relief options for companies and selecting the right type of bankruptcy depends on a range of factors. At Feinman Law Offices, we advise small businesses, sole proprietors, limited liability companies, partnerships and corporations on how to best use bankruptcy to achieve business objectives.
Our lawyers serve clients located in Lawrence, Lowell, Haverhill and the surrounding areas of northeastern Massachusetts, along with those in southern New Hampshire. Contact the firm today to set up a free bankruptcy evaluation.
Business Bankruptcy Options
Options in business bankruptcy include:
- Chapter 7 bankruptcy liquidation for businesses: This type of business bankruptcy can be used in one of two ways. In the case of a sole proprietorship or when an individual has personal liability for the company’s debt, Chapter 7 can be used to discharge debt while still protecting some assets. For corporations and limited liability companies, Chapter 7 is a practical option when the entity intends to close its business, as no assets can be protected from seizure. If a corporation or an LLC wishes to continue business operations, Chapter 11 is the better option.
- Chapter 11 business reorganization: This form of bankruptcy allows companies to reorganize their debt rather than going out of business due to insolvency. The business owner remains in control of business operations as a debtor in possession. There are minimal requirements for filing Chapter 11; however, this type of bankruptcy is highly complex and lengthy.
- Chapter 12 bankruptcy for family farms, ranches and fishing concerns: Chapter 12 specifically addresses the debt relief needs of farmers and fisherman. This type of bankruptcy can be used by both individual and corporate farmers. There are numerous qualification requirements for Chapter 12 surrounding farm debt, farm income and farm assets. While Chapter 12 provides farmers and fishermen many advantages over Chapter 11, it is still highly complex and requires the help of an experienced attorney.
- Chapter 13 bankruptcy for small businesses: Business entities such as corporations, LLCs and partnerships are not allowed to file for Chapter 13. However, individuals who operate a sole proprietorship can use Chapter 13 for business debt relief. In this option, the assets of the sole proprietorship will be protected, and the debt will be restructured into a new repayment plan. Depending on specific circumstances, some or all of the debt will need to be repaid.
Founding attorney Michael Feinman leads the firm’s bankruptcy practice and will evaluate your situation based on 30 years of experience. If bankruptcy is not the best option for your organization, the firm offers options for resolving insolvency informally.
Free Bankruptcy Evaluation — Contact Feinman Law Offices Today
Located in Andover, Feinman Law Offices provides bankruptcy representation to businesses located anywhere in northeastern Massachusetts or southern New Hampshire. To schedule a free bankruptcy evaluation, call the firm at 978-494-6669 or fill out this online contact form for a response via email.
If you are an individual with primarily household or consumer debts, pursuant to the provisions of 11 U.S.C. §528(a)(4) of the Bankruptcy Code, as amended, you should be advised that this office may be considered to be a “debt relief agency” in that this office provides assistance to individuals to file bankruptcy to seek relief pursuant to the provisions of the Bankruptcy Code.