Orange County Chapter 7 Business Bankruptcy Lawyer
When a business is struggling and the owner feels overwhelmed by debt, they may need to take their bankruptcy options into consideration. Chapter 7 bankruptcy is an option that liquidates the remaining assets of the business to pay the debts. Unfortunately, this also typically means that the business will be forced to close. Sometimes, this closure provides relief to the business owner who no longer has to worry about keeping the business afloat. If you feel it is time to consider your bankruptcy options, the Law Offices of Michael D. Pinsky, P.C. is here to help. To schedule a consultation with our Newburgh Chapter 7 bankruptcy law firm, contact our office today.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy results in the liquidation of a business in an effort to pay off as much of the debt accrued by the business as possible. Although this generally means that the business will be forced to shut down, it can also allow the business owner to walk away from any debt that they were burdened by before the bankruptcy.
How do I know if Chapter 7 is right for my business?
It can be a difficult decision to file for Chapter 7 bankruptcy, especially given that it may result in the closure of your business. However, there are some factors to take into consideration that may make this decision easier for you. A Chapter 7 bankruptcy may be the right for your business if it has little to no profit potential, if its debts are greater than the value of the assets, if the business offers a product/service that is offered by many other businesses in the area, or if debt restructuring is not an option.
What can be discharged in a Chapter 7 bankruptcy?
Upon successful completion of the Chapter 7 business bankruptcy process, all assets will be sold to pay the creditors and the business will be liquidated. This also means that the debtor will be free of any additional unsecured debts. However, the debtor will still be liable for any secured debts, as they are not dischargeable in bankruptcy.
The Automatic Stay
Upon filing for bankruptcy of any sort, including Chapter 7, the automatic stay will go into effect. The automatic stay requires all creditors to cease contact with and bar collection efforts with the debtor immediately upon filing. This allows the debtor a bit of breathing room to ensure that they can complete the bankruptcy process without the harassing letters and phone calls from collection agencies.
Contact a Newburgh, New York Business Bankruptcy Lawyer
If your Hudson Valley business is struggling to stay afloat, you may wish to consider your bankruptcy options. We understand that this can be a difficult reality to face and are here to help you navigate every step of the way. Chapter 7 bankruptcy is a popular option in New York to allow business owners to move on from the debt associated with their business and achieve a fresh start. To learn more about Chapter 7 bankruptcy, contact an Orange County bankruptcy lawyer at the Law Offices of Michael D. Pinsky, P.C. today to discuss your situation.
