Bankruptcy for Business

Chapter 11 Bankruptcy

The Law Office of Peter L Berk represents small businesses in Chapter 11 reorganization proceedings. Our focus in Chapter 11 is on allowing your viable business to operate without interference from aggressive creditor action. Chapter 11 can be a powerful means of forcing certain creditors to accept pennies on the dollar over time, modifying the terms of secured loans to favor the client, and eliminating bad contracts with vendors. Even if you desire to close your business, Chapter 11 can be sometimes be used to maximize the value of the business, and to eventually liquidate it as a going concern. This option can reduce the personal exposure of corporate officers and directors.

Chapter 7 Bankruptcy and Other Options for Going Out of Business

Chapter 7 Bankruptcy is one option for businesses that wish to stop operating and close their doors. While Chapter 7 can occasionally be a useful tool to stop creditor action and to wind up the affairs of the business, a corporation does not receive a Chapter 7 discharge. The officers and/or directors of the corporation may have personal exposure to the corporate liabilities through personal guarantees, which will survive the corporate bankruptcy. Therefore, Chapter 7 only makes sense for businesses in limited circumstances. Other options for going out of business, such as State law dissolutions and assignments for the benefit of creditors, may be better than Chapter 7.

The Law Office of Peter L Berk will tailor a specific strategy for closing your business, taking into account the value of business assets, the amount and types of debts, the degree of personal exposure of business owners, and many other factors. In addition to the business, we are focused on you as an individual. We want you to be able to leave your former business behind and move forward with future endeavors, without restrictions.