The Right Time to File Small Business Bankruptcy
If you are struggling to pay your business debt, and if that isn’t going to change in the foreseeable future, bankruptcy might be the best option. Small business bankruptcy falls into two major categories, business reorganization and dissolving the business.
You will have many factors to consider when making this decision. Our law offices know the ins and outs of small business bankruptcy. We can explain the subtle but important differences. We point you towards the best course of action for you and your business.
Declare Bankruptcy but Stay in Business
Chapter 11 Bankruptcy
Chapter 11 is for corporations and non-individuals, but individuals can apply for it if the situation qualifies. Chapter 11 is also called “Business Reorganization.” With this bankruptcy, you can rearrange your debt and receive most creditors’ protection while remaining in business. Read more about Chapter 11 here.
Chapter 12 Bankruptcy
Chapter 12 bankruptcy is for family farmers and fishers. It is the most flexible and generous of the small business bankruptcy options. You can reorganize your debt, including your home mortgage.
Your payment plan can extend past the five years allowed under Chapter 13. We explain all the advantages of Chapter 12 and help you decide if it’s right for your business. Read more about Chapter 12 here.
Chapter 13 Bankruptcy
Chapter 13 is a business reorganization bankruptcy that is also available to individuals. You set up a 3-5 year payment plan to satisfy your creditors. In the end, your remaining debt is discharged.
If you can pay back some of your debt and want minimal disruption to your business, Chapter 13 might be for you. We will help you pick the right option for you. Read more about Chapter 13 here.
Liquidate Assets & Close the Business
Chapter 7 Bankruptcy
If you wish to seek creditor protection and close down your business, then Chapter 7 might be right for you. This is the last choice of small business bankruptcy. You receive the most creditor protection, but you also have to give up the most. Under Chapter 7, you now need to prove that you do not have the means to pay back your debt. Read more about Chapter 7 here.
Years of Experience in Small Business Bankruptcy Court
We have over 36 years of experience handling Maine bankruptcy cases. It is the only focus of our law practice. We take great pride in knowing the fine print of bankruptcy law.
The code is constantly changing. We keep current with any changes to provide you with the best advice. Small business bankruptcy law is complicated. You need an experienced law firm like Perry O’Brian to guide you through the process.