Experienced Chapter 7 Bankruptcy Attorneys
As a business owner, it is your responsibility to oversee the operations of your company. Whether it be a large corporation or a small business, the ultimate goal is for it to grow. This can become an increasingly difficult task when you’re missing creditor payments and have loans going into default. Seeing your business go down an unfavorable path can be a difficult thing to accept, which is why many individuals fail to take action sooner.The idea of filing for bankruptcy may seem disadvantageous as closing your doors for good was never the plan, but that does not necessarily have to happen. A Louisiana corporate bankruptcy attorney at E. Orum Young Law Offices can discuss your bankruptcy options and serve as your legal counsel throughout the process.
When To File for Corporate Bankruptcy in Louisiana
Just as there are many reasons individuals file for bankruptcy in the state of Louisiana, there is also a variety of reasons businesses will file for bankruptcy. Whether large or small, every business owner knows when they open a business there’s a chance it will not make it. However, no business owner expects they will need to file bankruptcy to stay afloat.
One of the most telltale signs you might need to file bankruptcy is if you’re taking on more debts to pay your current debt. If you currently find yourself paying bills with credit cards or applying for loans to pay employees, you’re likely in need of assistance.
Talking with a trusted bankruptcy attorney near you is the best way to determine whether or not filing for corporate bankruptcy is the best idea for your business. A good bankruptcy attorney will be able to examine your business’s financial situation and discuss your available options.
Bankruptcy Options for Corporate Entities
Many bankruptcy myths cloud the thoughts of business owners throughout Louisiana. Influenced by them, many business owners delay necessary legal action and allow their business to go further into the negative. Through an in-depth consultation with a seasoned legal professional, you will come to realize that there are numerous debt-relief options you can pursue. These include:
- Chapter 11 Bankruptcy: Commonly referred to as reorganization bankruptcy, Chapter 11 is most suitable for corporations and small businesses. It provides temporary relief from creditors as you negotiate a plan to repay a portion or all of your creditor debts. This option allows you to keep your business open during the process.
- Chapter 7 Bankruptcy: In Chapter 7, your business must sell assets to repay creditors and lenders. This option often requires business owners to close the company.
- Chapter 13 Bankruptcy: Chapter 13 is most suitable for sole proprietors. This option allows business owners to eliminate, restructure or reduce unsecured debt and restructure secured debt.
Businesses often benefit most from Chapter 11 bankruptcy as it can effectively eliminate debt from their bottom line while allowing them to continue business operations. Although this avenue tends to be more expensive than Chapter 7 and Chapter 13, it offers the greatest reward for business owners who want to keep their doors open. With your legal options outlined, it is essential that you speak with a local bankruptcy lawyer who can guide you through the process.
Corporate Bankruptcy Process
As soon as a business owner files for corporate bankruptcy, they must cease all operations. That means all services must stop being rendered and if there is any production of goods, that process must stop as well. Once all operations have been ceased, a court-appointed trustee will work with you and your business to liquidate your assets and/or develop a plan to repay creditors.
It’s important to understand that if you’re a business owner, you will not be in charge of your own bankruptcy process. Furthermore, once the bankruptcy is complete, your business will no longer be operational. Although corporate bankruptcy is extremely emotional and stressful, a trusted and knowledgeable bankruptcy attorney can make it easier to manage.
Knowledgeable Louisiana Bankruptcy Attorneys
If your business is in financial trouble, there’s no better time than now to start working toward a solution. A bankruptcy attorney can help you determine which type of bankruptcy you should file and help you navigate the process. With more than 35 years of experience in Louisiana, the attorneys at E. Orum Young have helped thousands of businesses and business owners understand the options related to their financial burdens.
E. Orum Young Law Offices has filed the most bankruptcies in Northeast Louisiana. Whether you are a sole proprietor, DBA, LLC, or corporation, you can benefit from expert legal services. We can analyze the financial status of your business, suggest the most appropriate bankruptcy, and assist you throughout the filing process. Trust us to look out for your best interests every step of the way. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.
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