Our legal team of experienced Manhattan business attorneys at Rich Michaelson Magaliff Moser, LLP works with business clients to find the best approach to resolve their debts. In our experience, it is paramount to consider all of your options before making any decisions, especially when your business is at stake.
Bankruptcy: What to consider
Every business should be evaluated by an experienced legal team to determine the best course of action to take. However, here are some of the issues to consider when it comes to filing for bankruptcy:
What assets are at risk? Your personal assets may also be at risk. Understanding if your personal assets may be at risk is an important distinction to know before you even consider filing for bankruptcy.
What type of bankruptcy to file? Chapter 11 bankruptcy is typically filed by larger corporations, but it may be the best choice if you have a high net worth and steady income. Chapter 7 bankruptcy will liquidate your assets and bankrupt your company. If you do not want that to happen, Chapter 13 is likely the best type of bankruptcy to file.
Chapter 13 allows you to repay your debts on a structured repayment plan over a certain amount of time. This type of plan will allow your business to keep running and hopefully become successful in the future once your debts are paid off. Business owners will need to meet eligibility requirements in order to file for Chapter 13 or Chapter 7 bankruptcy.
Our attorneys at Rich Michaelson Magaliff Moser, LLP have a successful record of helping clients with business bankruptcy matters in New York. Consider contact an attorney to explore all of your options before you make any final decisions when it comes to your business.