Business bankruptcy is a legal proceeding that allows a business to eliminate or restructure its debts, either by liquidating assets or by developing a payment plan.

Chapter 7: This involves the liquidation of business assets to pay off creditors, often leading to the end of the business.
Chapter 11: This permits businesses to restructure their debts, allowing them to operate while repaying creditors over time.
Chapter 13: Generally for individual debtors but can aid business owners with personal liability for business debts.

Subchapter V is a recent amendment tailored for small business debtors. It provides a more streamlined and less expensive Chapter 11 reorganization route.

A business is eligible if its total debts, secured and unsecured, are less than a specified limit and if it meets certain operating criteria. Consult with Theodore N. Stapleton, P.C. for an in-depth assessment.

While it varies, many Chapter 11 cases can last from six months to two years. The timeline can be shorter for Subchapter V filings.

Yes, businesses typically remain operational during a Chapter 11 bankruptcy but under the oversight of the bankruptcy court.

Alternatives include out-of-court settlements with creditors, debt consolidation, and seeking private loans or investment.

If you've personally guaranteed any business debts, you might see an impact on your personal credit. It's crucial to distinguish personal and business finances.

In Chapter 11, businesses often continue operations, so employees might retain their jobs. In Chapter 7, the business ceases operations, which might result in layoffs.

Owners must provide accurate financial records, attend meetings, cooperate with the trustee, and avoid incurring additional unnecessary business debts.

Certain tax debts can be discharged, while others can't. It often depends on the type of tax, how old the debt is, and if returns were filed timely.

While in Chapter 11, business assets cannot be sold without the court's permission. However, the sale of non-essential assets to repay creditors is common.

Once a business files for bankruptcy, an "automatic stay" is in place, preventing most lawsuits from moving forward.

While Chapter 13 is for individuals, sole proprietors can file to address personal liability for business debts. This can aid in restructuring both personal and business obligations.

Our firm brings decades of expertise in business bankruptcy, from initial consultation, navigating the process, to finding the best post-bankruptcy strategies for your business.