Business Bankruptcy

Businesses have two types of bankruptcies available: Chapter 7 and Chapter 11. In a Chapter 7 case, rather than a discharge, the business entity will be dissolved. The business ceases operations unless continued by a Chapter 7 Trustee. A Chapter 7 Trustee is immediately appointed, and evaluates the business’s financial situation, with an eye toward assets that can be sold off to pay creditors.

Under a Chapter 11 bankruptcy, the debtor retains control of its day to day operations while working with the creditors and the Bankruptcy Court to negotiate a reorganization plan. Once all of the creditors are able to agree on the plan and the judge gives approval, the repayment plan becomes binding and the business must abide by its terms while operating and paying its debts.

If you are an individual or a business that is considering filing for bankruptcy, you need an expert bankruptcy lawyer you can trust. Let the Dothan Bankruptcy Attorneys at Boles Holmes White answer all your Bankruptcy filing questions and guide you through the process.  Give us a call today at 334-366-6086, or email us for a consultation.