Determining whether Bankruptcy is
the right option for your business requires a careful review of your financial
situation. It is possible that you may be able to avail yourself of non-bankruptcy
alternatives in surviving financial difficulties. However, where bankruptcy seems
inevitable, it is important to assess, up front, the business's short-term, mid-range and
even long-term goals in best evaluating what strategy or bankruptcy is best for you. |
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For
more information on a specific Chapter, click on the appropriate Chapter below: In New Jersey: In Pennsylvania: |
A Brief Look at Bankruptcy Options: Chapter 7 is what people traditionally think of when bankruptcy is mentioned, liquidation. Under Chapter 7, a Trustee is appointed to collect and sell the assets of the business, if economically feasible. More on Chapter 7. |
Terms: What do they mean? Automatic
Stay and... What will happen to the business? |
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| Chapter 9 is the municipal bankruptcy chapter for reorganization of local governments. The municipality proposes a plan of reorganization for repayment of creditors (to a certain extent) which must be approved by the court. More on Chapter 9. | |||
| Chapter 11 is the reorganization chapter which provides businesses with an opportunity to restructure its finances in an effort to stay in operation. The debtor proposes a plan of reorganization for repayment of creditors (to a certain extent). Creditors then vote on whether to accept or reject a reorganization Plan, which vote is subject to the Court's final consideration. More on Chapter 11. | |||
| Sole proprietorships may be able to avail themselves of personal bankruptcy options as they are not a formal and dsitinct business entity from the individual owners. Likewise, family farmers with small operations may have the opportunity to avail themselves of Chapter 12 which is discussed in the Personal Bankruptcy Section. More on Personal Bankruptcies. | |||
The cost of filing bankruptcy: Legal fees for a business bankruptcy can range from $1,000.00 for the most straightforward Chapter 7 to many thousands of dollars and beyond for a complex Chapter 11 filing plus costs. The Court filing fees are standard, $209.00 for a Chapter 7 and $860.00 for a Chapter 11. Further, there may be additional fees paid to the trustee depending on the type of case and assets. To find out more simply contact us. |
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