Orlando Business Bankruptcy Lawyer
Individuals need attorneys to navigate through the complex consumer bankruptcy process. Businesses need attorneys even more to navigate through the even-more-complicated commercial bankruptcy process. Chapter 11, which is also known as a reorganization bankruptcy, protects a business from its creditors while the business renegotiates unfavorable contracts and otherwise prepares to move forward into the future. Chapter 7 and Chapter 13 are available for businesses as well.
The experienced Orlando business bankruptcy lawyer at the Law Offices of Carol M. Galloway are fully familiar with all these options. Our professional team evaluates your business’ financial and legal circumstances and recommends a course of action. A case evaluation is just the beginning. Our attorneys stand up for you throughout the process, during informal meetings with the bankruptcy trustee (person who oversees a bankruptcy for a judge) and in court hearings as well. Through it all, we never lose sight of our goal, which is to help your business get a fresh start.
Chapter 11 Basics
A court case begins with a petition with the bankruptcy court. Usually, the debtor files a voluntary petition. Sometimes, a creditor or creditors file an involuntary petition. A voluntary petition must also include:
- Asset and liability schedules,
- Current expense/income statements,
- A detailed list of unexpired leases, executory contracts, and other business agreements, and
- An even-more-detailed SOFA (Statement Of Financial Affairs).
Additionally, an Orlando business bankruptcy lawyer must include a written disclosure statement and reorganization plan. The disclosure statement is a document that must contain information concerning the assets, liabilities, and business affairs of the debtor sufficient to enable a creditor to determine the effectiveness of a proposed reorganization plan.
Different courts in different jurisdictions require different information in different circumstances. If, and only if, the creditors approve the plan, the judge holds a confirmation hearing.
Chapter 13 and Chapter 7 Business Bankruptcy Basics
Technically, Chapter 13 is reserved for individuals. Therefore, only sole proprietorships may file this form of bankruptcy. Generally, Chapter 13 gives debtors up to five years to pay off certain obligations. This kind of bankruptcy also discharges (forgives) most unsecured debts, such as credit card bills.
A business Chapter 7 bankruptcy is usually a liquidation. Typically, business assets aren’t exempt in bankruptcy. Chapter 7 allows businesses to close on their own terms as opposed to the terms creditors dictate. A business liquidation bankruptcy is obviously a big step. Sometimes, however, there’s no reasonable path forward.
Bankruptcy Protections
In terms of commercial or individual debtor protection, the Automatic Stay is probably the most important bankruptcy feature. Section 362 of the Bankruptcy Code usually applies in all forms of bankruptcy. This provision stops creditor adverse actions like:
- Foreclosure,
- Creditor lawsuits,
- Repossession,
- Creditor harassment, and
- Eviction.
As mentioned, most business assets aren’t exempt in bankruptcy. However, the judge is in complete control of the proceedings. So, before creditors divide business assets among themselves, they must go through the judge first. This additional layer gives an attorney an opportunity to negotiate a more favorable resolution out of court.
Work With a Dedicated Orlando Business Bankruptcy Attorney
Bankruptcy offers distressed debtors a way out. For a free consultation with an experienced Orlando business bankruptcy lawyer, contact the Law Offices of Carol M. Galloway, P.A. We routinely handle matters throughout the Sunshine State.
