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Chapter 7
Are you in over your head in debt and looking to get a fresh start? If your answer is "yes", then Chapter 7 bankruptcy might be the perfect solution for you. Chapter 7, or straight bankruptcy, will get rid of all of your unsecured debt once and for all.
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Are you facing a foreclosure on your home, a repossession of your vehicle, or a garnishment of your wages based on back taxes? If so, Chapter 13 bankruptcy can help you stop those actions, catch up on what you owe, and stay current going forward.
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Can I file Chapter 7 for my business?
While Chapter 7 bankruptcy is often looked upon as only a personal bankruptcy solution, this chapter can be used to file bankruptcy for your business as well. The reasons for seeking Chapter 7 relief for your business can be numerous. Dwindling clientele, outdated machinery that is too costly to replace or retool, mounting business debt, and threatening creditors often are some of these issues. Often creditors seek remedies such as attachment, which allow them to have the sheriff seize and sell assets. This can be especially troublesome if those assets are important tools needed to run you business, such as inventory or production equipment. Furthermore, they can garnish account receivables, making your customers pay creditors directly instead of you, which can further hurt your cash situation.
When a business is faced with such mounting problems, it is often apparent that it is time to close the doors, but many people do not know how. If you reach such a point, a bankruptcy lawyer Lancaster should be sought out, as bankruptcy may be a good option. Chapter 7 provides a process by which the business is liquidated, and the assets are distributed to creditors in a fair and equitable manner. A trustee is appointed to your case, who will see to the liquidation of the business in a manner that provides for the greatest recovery for all involved. They may be authorized to run the business for a short period of time, but only if it doing so is to the benefit of your creditors. At the end of the Chapter 7 case for a business, there is no discharge like in a personal case. This is because unlike in a personal bankruptcy, there is no need to get rid of liability for debts, as the business is dissolved and will no longer exist for creditors to collect from.
While Chapter 7 provides and efficient manner in which to wind up a business, this may not always be the appropriate move. If a business has a few problems, but otherwise is in good shape, a Chapter 11 bankruptcy may be appropriate for you business. It allows for restructuring of debts, cancellation of certain contracts, and has many options that can save a struggling business. However, Chapter 11 cases can be long, complex, and costly. Thus, it is imperative that you seek legal advice from an experienced Lancaster bankruptcy lawyer to find out what course of action is best for your business. The seasoned bankruptcy lawyers Lancaster, such as those at Wadhwani & Shanfeld, A Professional Law Corporation, have a great deal of experience in such matters and can help you decide which course of action is best.