Law Offices of David P. Leibowitz LLC
Lakelaw is a registered assumed name for Law Offices of David P. Leibowitz LLC
Posted by David Leibowitz on March 28th, 2009 in Alternatives to Bankruptcy, Business Bankruptcy, Alternatives to Bankruptcy, Assignment for the Benefit of Creditors, Chapter 128, Dissolution, Uniform Commercial Code Sale
Chapter 11 is used to help businesses reorganize. It continues to be an important tool. There are many important options which a small business and even a medium sized business should consider when facing financial difficulties.
Is the business fundamentally sound?
If the business continues to be viable, think about what went wrong. Think about how it could be fixed. Think what the business would look like if you fixed it. Then think about whether your creditors are better off if your business is fixed and continues to be viable. If you can think positively about all of these questions, and if you have some cash to fund the reorganization of your business, Chapter 11 can still be a good idea. There are some down-sides to chapter 11:
Alternatives to Chapter 11
There are several alternatives to chapter 11. Lakelaw handles all of these for small and medium sized corporations, limited liability companies and other business forms:
Liquidation of the Business
In the event that you feel that your business can’t be saved, there are many possibilities. Bankruptcy under chapter 7 is only one possibility. Here are some others:
Each of these vehicles has upside and downside. So when in doubt, call us and we’ll evaluate your particular situation and then help you make the right choice for you and your business.