Being a business owner and getting stuck with unpaid invoices can be one of the most unfortunate things that can happen to your business. If you are dealing with such a situation now and creditors are after you, then it may be time to file for bankruptcy. Chapter 11 bankruptcy is specifically for businesses. It offers a way to restructure your debt. Getting legal assistance from a West Virginia bankruptcy lawyer will be extremely helpful to ensure filing is done properly.
At Mountaineer Criminal Law Group, we will review your information and help you with a means test to determine which chapter of bankruptcy is right for you. Don’t file alone when making a mistake may mean you have to wait 6 months or more to be allowed to file again. Get it done right the first time with a West Virginia bankruptcy lawyer.
In the Case of Business
If you are facing some serious trouble in terms of business finances, then filing a Chapter 11 case is a good move. You can file a petition at the bankruptcy court. This case gives your creditor a chance to file an involuntary petition at the court against the debtor too. The difference from a Chapter 7 bankruptcy case and Chapter 11 is that you can keep running your business even during the bankruptcy process. There won’t be a trustee assigned to take care of the business and debts. However, if the court suspects your business to be involved in some fraudulent activities, then they can create a board of trustees to manage the finances.
Although you will still be in control of your business, the bankruptcy court will have final say over all major decisions. Their jurisdiction will include:
- Selling assets of the company
- Signing and breaking the lease agreement
- Interfering and modifying business contracts if necessary
- Shutting down the business
- Stopping the expansion of the business
In such instances, the court will consult the creditors, stakeholders and the unsecured creditor’s committee before making any major decision. The process of Chapter 11 bankruptcy can last for a few months up to two years.
Chapter 11 bankruptcy allows you to come up with a repayment plan to your debtors. Once you come up with a plan, one of three things can then happen:
- The plan can be approved
- The creditor’s committee can propose a competing plan
- Creditors can move to dismiss the plan and turn the filing into a Chapter 7
While preparing the plan, make sure you are making the plan in good faith, abiding by all the laws laid out by the bankruptcy court of West Virginia. There are certain criteria the plan must meet in the bankruptcy court. Many cases end up being turned into Chapter 7 filings. However, being successful in filing this case will offer you the chance of restructuring your finances.
We, at Mountaineer Criminal Law Group, can help you in filing the case. For more details on Chapter 11 bankruptcy or for a free consultation from attorney Sean Logue and his team, call at (304) 900-3391 or contact us online.