Helping Businesses in the Cincinnati Metro Area Get Bankruptcy Protection
Your business is more than a financial investment. If you have spent years trying to grow your business, it can be devastating when that business is unable to continue. Depending on your needs, bankruptcy can help you terminate operations or reorganize your business debts. Contact the law firm of Michael E. Plummer & Associates. From our office in downtown Covington, we have helped numerous small businesses throughout the Tri-State area through the bankruptcy process.
Chapter 7 for Businesses
Chapter 7 bankruptcy will put a formal end to your company. There are no business exemptions in Chapter 7, so any remaining business assets will be liquidated to pay your creditors. Our lawyers will take a close look at any contracts that you entered into on behalf of your business. If you signed any personal guaranties, you may be personally liable for some of your company’s debts. If this is the case, we can advise you as to whether filing a personal Chapter 7 is a reasonable option.
Chapter 11 for Businesses
If your business has run into difficulties but you still maintain hope that you can see your business through this time, Chapter 11 bankruptcy may work for your company. Under Chapter 11, you will file a “plan of reorganization” to the bankruptcy court. This plan will show how you intend to pay your creditors. A “creditors’ committee,” which consists of your company’s largest unsecured creditors, will be able to review and approve your repayment plan.
There are some drawbacks to Chapter 11. For one, Chapter 11 works best for businesses with one or a few unsecured creditors. The more creditors you have, the harder it will be to have your creditors agree on your plan of reorganization. Secondly, Chapter 11 gives your creditors substantial access into the workings of your company.