Business Bankruptcy Lawyer And The Various Chapters Of Bankruptcy Laws

If you are running a business that is drowned in the ocean of debts and is not in a position to meet its debt obligations, it may be the time to hire a business bankruptcy lawyer and file a court petition. There are usually two options available to you in this regard – filing under chapter 7 or filing under chapter 13. In order to make an informed decision regarding the same, it is very important for you to understand the basic provisions under both the chapters.

Filing Under Chapter 7

Filing under chapter 7 means you have planned to put your business to an end. The business is in a hopeless case and you do not want to continue with the current venture. When you file under this chapter through an online bankruptcy lawyer, you are taking a step towards straight bankruptcy. It means if the court gives judgment in your favor, the trustee will liquidate all the assets and properties associated with your business. The money thus received will be used to settle the claims of your creditors on a priority level if any. It means the secured debts will be settled first and then the rest of the amount will be distributed among the unsecured creditors. Here, it is very important for you to understand that chapter 7 also has a provision for certain exemptions on the assets and properties of your business. If you have hired an expert bankruptcy lawyer to handle your case, your business bankruptcy lawyer will be a great help to you in making the best use of those exemptions. You will be able to save more for you so that you could start off a new financial life with less difficulty.

Filing Under Chapter 13

If your business is running into huge debts, but you have the hope that given some time you can still put your business back on the profitable track and pay off all the debts simultaneously, you are recommended to file under chapter 13. The provisions under this chapter allows you to continue with your existing venture while paying off the debts simultaneously as per a repayment plan suggested by the court. The best thing with this chapter is that it also helps you to reduce the overall amount of debts to a much lower amount. A good corporate bankruptcy lawyer will help you in getting a much easier repayment plan.

You are recommended to hire a business bankruptcy lawyer much ahead of time so that you could make sure that which type of bankruptcy you qualify for.