Practice Areas - Bankruptcy

The attorneys at Myers Wilson P.C. will assist you in the orderly liquidation of your business.  Henry Ford said that “[f]ailure is only an opportunity to begin again more intelligently.” 

In a Chapter 7 Bankruptcy case, businesses are liquidated in an orderly manner.  The Chapter 7 bankruptcy for businesses (like individuals) will require the principal officer(s) and/or director(s) to attend a “meeting of creditors” which is often referred to as a “341 meeting.”  The U.S. Trustee that has been assigned to your case will review your business’ bankruptcy forms and ask you some basic questions, and, more often than not, your business’ creditors will not attend this meeting.  Prior to and after the meeting of creditors, the attorneys at Myers Wilson P.C. will work with the U.S. Trustee to conduct the orderly liquidation of the assets of your business.

A Chapter 11 bankruptcy is often referred to as “reorganization.”   For more information on a Chapter 11, please click here.

Generally speaking, every asset that is owned by your business will either (a) be surrendered to a creditor that has a lien on the asset, or (b) will be liquidated and the proceeds of the sale will be distributed to creditors of your business.  After the orderly liquidation of your business’ assets and all proceeds are distributed to creditors, the U.S. Trustee will close your business’ bankruptcy case, and that’s the end of the process.  This may come as a surprise to you, but businesses do not receive a discharge from their debts.  Unlike individuals who file Chapter 7 bankruptcy who continue to live on after they file bankruptcy, businesses who file for Chapter 7 bankruptcy are closed, and therefore, there is no need for the business to receive a discharge.  After all, once the assets of the business are liquidated and the business is closed, there is no reason for creditors to continue to pursue collection efforts.

This may sound like a simple process, however, failing to follow the rules, regulations, and laws related to the orderly liquidation of your business’ assets can result in adversarial proceedings being filed by creditors, and/or personal liability for the officers and directors of the business.  In order to insure that your business’ bankruptcy does not create problems instead of solve problems, please come in to see the attorneys at Myers Wilson P.C. for a consultation.

 

Terminology Help

Chapter 7 - Liquidation form of Bankruptcy.

Chapter 13 - Payment Plan form of Bankruptcy.

Chapter 11 - Business and Corporate Reorganization

Businesses - What Happens to My Business in Bankruptcy?

Individuals - What Can I Keep In Bankruptcy?

Other Important Bankruptcy Terms You Should Know.