Helping Businesses Find Financial Solutions
Getting out of financial trouble can feel impossible. As a business, there is a lot on the line. Thames | Markey has helped hundreds of clients throughout Northeast Florida understand their options in this challenging arena. Our knowledgeable attorneys can examine your case and discuss potential solutions based on your situation. We can find the light at the end of the tunnel.
Chapter 7, Chapter 11 And Assignment For The Benefit Of Creditors: What Does It All Mean?
When most people think of a business bankruptcy, they are generally referring to a restructuring under Chapter 11 of the Bankruptcy Code. Under Chapter 11, businesses (and sometimes individuals) are given a breathing spell from pending litigation and collection efforts to enable the development of a plan of reorganization for addressing creditor claims in an orderly and affordable fashion. Chapter 11 reorganizations may also be utilized to facilitate asset sales without the attendant fraudulent transfer or successor corporation liability risk. Sometimes Chapter 11 is necessary just to ensure an orderly wind-down of a business.
Chapter 7, on the other hand, involves the liquidation of all non-exempt assets by a court-appointed trustee. For businesses, this often means you can divorce yourself from the burdens, headaches and expense of closing a business by allowing a fiduciary to supervise the process. For individuals, Chapter 7 provides the opportunity for a “fresh start” free and clear of prepetition claims, while at the same time allowing you to retain your exempt property. Our lawyers are extremely adept at guiding clients through the potential minefields attendant the exemption planning which often precedes the Chapter 7 filing.
While filing for bankruptcy might be in the best interest of the business, there are alternative options. One of them is known as an assignment for the benefit of creditors. This state court alternative to bankruptcy allows you to work with a fiduciary selected by you to liquidate your company’s assets and distribute the sale proceeds to creditors in proportion to their claims. It is often a faster process and can be accomplished without the publicity attendant a bankruptcy filing. An assignment proceeding is also very useful for facilitating a sale of assets free of creditor claims. We can discuss whether this is an option for your business and the advantages it may bring.
We Can Help; Call Today
These cases are often stressful, and it may feel like there is no way out. Our attorneys have helped hundreds of clients get back on their feet. We will answer your questions along the way and address all of your concerns. To learn more about how we can help, call our office in Jacksonville today at 904-358-4000. You can also email us and someone will be in touch with you shortly.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.