A business filing a Chapter 11 bankruptcy may be a corporation, sole proprietorship, or a partnership.
And there are undoubtedly differences, depending on the status of the business.
This is where the specialised knowledge and training of a Chapter 11 bankruptcy attorney will be indispensable.
It is important that if you are facing potential problems, that you get advice as early on as possible.
If you are a corporation facing chapter 11 then, it is usual that only the business assets will be looked at for the purposes of a financial settlement. Whether that is a planned and agreed financial settlement or indeed a Chapter 11 bankruptcy filing, will be determined by your own unique situation.
If you are a sole proprietorship, and are looking at chapter 11 bankruptcy then your business and personal assets will be taken into consideration for the bankruptcy.
And in a partnership bankruptcy case, the partners’ personal assets may, in some cases, be used to pay creditors or the partners may be forced to file for personal bankruptcy protection.
So you see you need to have a very good understanding of what your position is before you make any decisions as to the course you should take, and the solution that is best for you, your family, employees and business.
As there is so much at stake here, and given that you will be dealing with the pressures and stresses commonly associated with any type of financial problems, a Chapter 11 bankruptcy attorney should be consulted.
What will a Chapter 11 Bankruptcy Lawyer or a Chapter 11 Bankruptcy attorney do for you?
The very first thing that your attorney will complete is an assessment of your current situation.
Initially this may be a free consultation and will give quick feedback on some early recommendations. This advice will be high level, and will mainly focus around whether or not a chapter 11 solution is the best for your business.
Remember this cannot be in-depth, but will absolutely give you a good idea of whether to proceed toward a chapter 11 bankruptcy filing or not.
In some cases it may be that you no longer have a choice, this is where the situation has deteriorated to the degree where your company will go through an involuntary chapter 11 bankruptcy. But in all cases your attorney will advise on each step of the way.
After the initial free consultation, you will then at least have an idea of the direction you should be looking at taking
Once you have engaged a chapter 11 bankruptcy attorney to act for you then the activity begins
The initial assessment will not be built on, and a period of time will be spent getting a full and complete understanding of your overall financial situation, debt obligations, assets and much more. Full disclosure is expected and remember one of the great things about using a bankruptcy specialist is the fact that they have heard it all before, and are not looking to judge but just to listen, understand and advise.
It is imperative that he or she is given all the information that they need to handle your case. By withholding or omitting any details you could jeopardise your case, and you could even be prosecuted for fraud.
Your bankruptcy attorney will complete and process all the forms with you, and then they will submit these to the appropriate agencies and government bodies.
If there is an interview involved, your attorney will be on hand to either attend this with you, or will counsel you in advance on how you should prepare for and manage this meeting.
Chapter 11 bankruptcy filings are far more complicated than any consumer filings, and this is why serious consideration should be given to taking professional specialised advice.
Choosing Your Attorney
When choosing a chapter 11 attorney, let common sense prevail but here are some basic pointers
- Ask around for recommendations if possible
- Only ever use an attorney who specialises in business corporation bankruptcy
- Always take advantage of the free consultation and make sure that you have a list of questions ready for this call. Namely, their experience and references along with their fees and charges.
- Do not choose an attorney that you have not had a good feeling from on the initial call. No matter what their credentials are, or how inexpensive or cheap they appear to be, move on.
Remember you will be working closely and intimately with this person, during an incredibly stressful time, and as such you need to at least have a good feeling about them.