You’re running a business and are considering filing for corporate bankruptcy in Brooklyn or elsewhere in New York. What are your options and what do you need to know?
- First, if you’re a corporate entity, you need to work with a bankruptcy attorney (preferably one with substantive corporate bankruptcy filing experience in New York).
- Second, you need to figure out whether to file Chapter 7 or Chapter 11. Chapter 7 is for winding down or liquidating your company. Chapter 11 is for reorganizing your company (though Chapter 11 can also be used for winding down your company). Often, a Chapter 11 is a more complex process than a Chapter 7 and usually covers a longer period of time. Though certainly not in every case. An experienced Brooklyn bankruptcy attorney will of course be able to best provide you with insights into the best strategic approach for your situation.
- Third, you need to complete the bankruptcy petition. In addition to basic information about yourself, your company and its assets and liabilities, you will need to put together a creditor matrix that lists all of your creditors, amounts owed and address/contact information for each of them. This is important for figuring out the total amount of debt owed, who the largest creditors are and how to contact them so they can be noticed at key points in your company’s case. Again, an experienced bankruptcy attorney will walk you through these steps and will have a sophisticated system in place to ensure this part of the process goes as smoothly as possible.
- Fourth, you file your case with the Bankruptcy Court. Traditionally, a case was filed by bringing it to the clerk’s office in the Bankruptcy Court during normal business hours. However, these days if you’re working with a bankruptcy attorney, your case will be filed electronically. That is, right from your attorney’s computer in their office. And it can be filed at any time day or night.
If you have any questions about filing for corporate bankruptcy or are seeking Chapter 11 bankruptcy attorneys in Brooklyn, NY, please feel free to contact New York bankruptcy lawyer Bruce Weiner, an experienced Brooklyn bankruptcy attorney for a free initial consultation.