When your business is in trouble, you are in trouble. You have worked hard for years, invested resources, energy, time, and attention, and the last thing you want is to see it all go down the drain because of financial difficulties. If you are dealing with the pressures of pending lawsuits, default judgments, collection demands, and bank or government levies, corporate bankruptcy could be the right solution to save your business and get it back in the black.
Is Corporate Bankruptcy the Right Move for Your Business?
If your company is overwhelmed with debts, but you want to keep operating, Chapter 11 reorganization could be the right solution, and has been for a number of the nation’s major corporations. It can give you the ability to continue operating, while keeping creditors at bay and preserving some cash flow to invest back into the business.
Chapter 11 is a good choice for a company with the potential to generate long-term revenues greater than the liquidation value of its assets. The company continues operating as it reorganizes, and creditors are generally repaid more than they would be if the company filed for Chapter 7 liquidation. In fact, some companies filing Chapter 11 have presented repayment plans that gave creditors 100% payment on balances owed. According to the U.S. Securities and Exchange Commission (SEC), Chapter 11 allows a business to reorganize and engage in the efforts necessary to become profitable.
For a company inundated with debt that lacks the potential to generate revenues in excess of the value of its liquidated assets, Chapter 7 liquidation might be the best solution. In this type of corporate bankruptcy, the company halts all operations and goes completely out of business. Our California corporate bankruptcy lawyers at DCDM Law Group can help you determine if a Chapter 11 or Chapter 7 bankruptcy filing is the right choice for your company and if so, we can guide you skillfully through the process.
Corporate Bankruptcy Attorney to Walk You through Chapter 11
Under the U.S. Bankruptcy Code, there are certain specific steps in the Chapter 11 process, and our experienced corporate bankruptcy lawyers can help you every step of the way. The process includes:
- Disclosing all the company assets
- Listing all the debts for which the company seeks protection
- Giving creditors an opportunity to raise objections or question the debtor
- Appointment of a Trustee to review information provided by the debtor and creditors, investigate the business for mismanagement or fraud, and determine if Chapter 11 is appropriate
- Developing a repayment plan, which is voted on by creditors and shareholders
- Re-negotiating contracts with creditors
- Emerging from bankruptcy
Contact DCDM Law Group if your company is in financial trouble. We can review your situation and help you determine if bankruptcy is the right solution, and advise you of any alternatives that may be possible.
Our firm has been crafting solutions for California businesses for more than a decade. With the help of our experienced corporate bankruptcy attorneys, your company has a better chance of surviving bankruptcy and emerging as a profitable concern at the end of the process.
- SEC: Corporate Bankruptcy