At the Johnson Law Firm, P.A., we represent individuals and married couples in Chapter 7 bankruptcy matters. We take the time to explain how Chapter 7 works, and how it can help you obtain a fresh start. To find out if you qualify for Chapter 7, take our free online evaluation or call (904) 652-2400 to schedule a free consultation.
If your business is experiencing serious financial problems, we can be of assistance. In situations where it seems that the business will be unable to pay its debts as they come due or simply continue as a going concern, a Chapter 7 bankruptcy filing may be appropriate.
Similar to an individual Chapter 7 bankruptcy, a small business Chapter 7 bankruptcy is commenced by the filing of a petition, schedules, and statement of financial affairs. While there is no credit counseling requirement for business cases, a company representative must attend one court hearing called the 341 Meeting of Creditors.
Essentially, the company turns over all of its assets to the trustee, which are then sold. The proceeds of the sale are then used to satisfy administrative expenses and creditor claims.
The primary benefit of this type of bankruptcy is the automatic stay, which prevents creditors from disrupting the dissolution of the company with harassment, collection suits, repossessions, or foreclosures. It also allows the business to wind down quickly and affordably and is a useful technique to avoid confusion in the marketplace should you desire to start a new business in the future.