Chapter 7 Business Liquidation Attorney
The current economic condition has made it more and more difficult for businesses to keep up with their overhead and debts. Unfortunately for some, the debt is simply too much and the business is no longer able to stay afloat.
How Business Liquidation Works
In Chapter 7 bankruptcy, the bankruptcy court appoints a trustee to liquidate the business’s assets and distribute the proceeds to the business’s creditors. After the process is finished, the business ceases to exist and so do the debts.
Although Chapter 7 bankruptcy means the business has to close down, it does have certain advantages, it announces the end of operation of the business and the creditors will stopped from undertaking collection against the business.
Business Bankruptcy Alternatives
A business approaching bankruptcy can have its lawyer or law firm file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Chapter 7 is the sole option that involves forfeiting the business assets to its creditors. Alternative forms of bankruptcy allow a bankruptcy attorney to restructure the business, pay back most or part of the debt, and keep the business in operational.
To learn more about bankruptcy in the Austin, Georgetown, Leander, or Round Rock area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call 512-322-5367 or or contact our offices online.