When you are deep in debt, it can affect every aspect of your business. The thought of bankruptcy is daunting and stressful, but it may be the most suitable financial solution for your situation. At Stok Folk + Kon, we take pride in showing our clients how this process can actually help your business and the assets that are vital to its operation. Our knowledgeable bankruptcy lawyers are familiar with this area of the law and will work diligently to help you explore your alternatives.Filing for Chapter 7 or Chapter 11
We represent both creditors and debtors in complex matters. Our extensive business knowledge allows us to understand the needs of your enterprise and assess the financial efficiency of each option. We not only act as your legal advisers but also as your business consultants. Bankruptcy law is complicated, and the type of proceeding that may help you will depend on the circumstances of your situation. As a business, you usually will consider filing under Chapter 7 or Chapter 11.
Chapter 7 might be an effective option if you are facing business debts that you cannot foresee being able to pay back. It also can be helpful if creditors and bill collectors are constantly harassing you and your employees, or your business is facing a court judgment it cannot pay due to financial distress.
Chapter 7 is designed for business owners who have gone so deep into debt that they need to consider liquidation. In a typical proceeding of this type, you get rid of everything that you owe and obtain a “fresh start.” This happens when the trustee collects all of your assets and sells them, as long as they are not exempt under the relevant bankruptcy laws. The proceeds from the sale of assets are then distributed to your creditors with a fee taken by the trustee responsible for monitoring the distribution.
From the creditor perspective, perhaps the most important determination to make is whether the debt is worth pursuing. Our business expertise helps us analyze and answer this question. We will examine the facts of the case and assess what makes the most financial sense for the creditor.
Chapter 11 bankruptcy laws are designed to help businesses reorganize while they are still operating. In other words, this type of restructuring allows the managers of an enterprise to create a plan according to its needs to pay creditors over time. The plan must be presented by the debtor and accepted by the court and relevant creditors. While the business retains control of its day-to-day operations, there is a court-appointed trustee who oversees the overall process.
In Chapter 11 cases, creditors have an opportunity to examine the contents of the bankruptcy petition and schedules. They are not required to file claims if they are listed on the schedule and do not have an objection to it. If a creditor is explicitly listed on the schedule, it is eligible to receive a distribution without having to file any claim. However, a creditor who is omitted from the schedule or objects to treatment on the schedule must file a claim to voice that concern.Seek Advice from a Bankruptcy Lawyer in Fort Lauderdale
For the managers of a business, considering the possibility of bankruptcy can trigger feelings of anxiety. Deciding whether this step is the right choice for you or finding out how to protect yourself as a creditor requires seeking the help of an experienced commercial bankruptcy attorney. Whether you are a business or a creditor in the Fort Lauderdale area, the legal professionals at Stok Folk + Kon can assess the facts of your case, answer your questions, and discuss strategies that may help you. Call us today at (954) 237-1777 or contact us online for a consultation. We serve clients in Hollywood, Fort Lauderdale, and throughout the state of Florida.