If you own a small business in Brooklyn, New York and are facing financial difficulties, it’s important to know that filing business bankruptcy is an option for you.
What kind of business bankruptcy information do you need to proceed?
First, you need a lawyer. Preferably an experienced Brooklyn business bankruptcy lawyer.
Second, you need to figure out whether you should be filing business bankruptcy under Chapter 7 (liquidation) or Chapter 11 (reorganization). (Answering this question is one of the reasons you need said experienced Brooklyn business bankruptcy lawyer.)
Third, what kind of assets do you have? If all you have is a computer, a desk and some chairs, then that’s not the level of assets that might typically attract a trustee’s attention, which makes things a little less complicated. If, on the other hand, you have more significant assets in the form of, e.g., inventory, expensive equipment or real estate, then the trustee is likely to be more involved and things will be more complicated.
Fourth, how much do you have in your operating account? Again, a significant amount will attract trustee attention. And unlike personal bankruptcy, there are no exemptions to rely upon.
Fifth, do you have any accounts receivable? Just because you don’t have the money yet doesn’t mean it’s not part of the bankruptcy estate used to pay off creditors. If money is owed to you, that counts as well and you will need to disclose it.
Sixth, do you have any partners? If so, then depending on the nature of the relationship (e.g., corporation, partnership, limited liability company), your partners may be affected by your bankruptcy as well.
Seventh, are there any loans between the business and the owner(s) as well as any family members? If so, this could raise issues pertaining to “preferences” or “fraudulent conveyance.” (In some such instances, it may be actually better to walk away rather than actually file for business bankruptcy.)
In the case of all of the above, it’s important to have experienced business bankruptcy lawyers working with you to identify the issues and walk you through the steps you need to take to make filing business bankruptcy go as smoothly as possible.
If you have more questions about business bankruptcy, please contact the experienced Brooklyn NY bankruptcy attorneys at Rosenberg, Musso & Weiner for a free initial consultation.
