In Missouri, businesses could find themselves facing serious debts that are draining the company’s profits. The debts could also present the probability of legal action by their creditors in which extreme financial losses are possible. When facing the circumstances, business owners must make tough choices to avoid the total loss of their company when possible. A corporate bankruptcy attorney in St. Louis, MO helps the company owner find a clear solution.
In Missouri, businesses could find themselves facing serious debts that are draining the company’s profits. The debts could also present the probability of legal action by their creditors in which extreme financial losses are possible. When facing the circumstances, business owners must make tough choices to avoid the total loss of their company when possible. A corporate bankruptcy attorney in St. Louis, MO helps the company owner find a clear solution.
Reviewing Bankruptcy Choices
The bankruptcy choices for businesses are chapter 11 and 7. Chapter 11 is similar to chapter 13; however, it is designed for businesses instead of consumers. It is a structured repayment plan that allows the company to pay off debts over the course of up to five years. On the other hand, chapter 7 is the liquidation process.
How Does Chapter 7 Work for Businesses?
Chapter 7 for businesses allows the seizure of all assets owned by the company. Assets are sold through a private sale or auction. During the process, all properties are sold and used to settle the company’s debts. The company must shut down prior to the beginning of the process. Once the process is completed, the company ceases to exist.
What Happens During Chapter 11?
Chapter 11 allows the company to start a repayment plan while continuing to operate. The court assigns a monthly payment for the company to accommodate the requirements of the plan. They cannot acquire more debts during the case. They cannot open any new lines of credit. They must also use all disposable profits to pay off any debts that weren’t included in the bankruptcy claim.
Automatic Stays and Protections
The business is not at risk of facing legal action for any debts included in their claim. This includes foreclosure and repossession. The automatic stay lasts until the end of their bankruptcy case.
In Missouri, businesses file for bankruptcy to eliminate debts that are too overwhelming. The cases allow them to liquidate their assets or to start a payment plan to settle their debts. Companies that need to learn more about the process can contact a corporate bankruptcy attorney in St. Louis, MO by visiting Stlbankruptcyfirm.com today.
The bankruptcy choices for businesses are chapter 11 and 7. Chapter 11 is similar to chapter 13; however, it is designed for businesses instead of consumers. It is a structured repayment plan that allows the company to pay off debts over the course of up to five years. On the other hand, chapter 7 is the liquidation process.
How Does Chapter 7 Work for Businesses?
Chapter 7 for businesses allows the seizure of all assets owned by the company. Assets are sold through a private sale or auction. During the process, all properties are sold and used to settle the company’s debts. The company must shut down prior to the beginning of the process. Once the process is completed, the company ceases to exist.
What Happens During Chapter 11?
Chapter 11 allows the company to start a repayment plan while continuing to operate. The court assigns a monthly payment for the company to accommodate the requirements of the plan. They cannot acquire more debts during the case. They cannot open any new lines of credit. They must also use all disposable profits to pay off any debts that weren’t included in the bankruptcy claim.
Automatic Stays and Protections
The business is not at risk of facing legal action for any debts included in their claim. This includes foreclosure and repossession. The automatic stay lasts until the end of their bankruptcy case.
In Missouri, businesses file for bankruptcy to eliminate debts that are too overwhelming. The cases allow them to liquidate their assets or to start a payment plan to settle their debts. Companies that need to learn more about the process can contact a corporate bankruptcy attorney in St. Louis, MO by visiting Stlbankruptcyfirm.com today.
