Business Bankruptcy

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Business Bankruptcy Representation

Businesses can file a Chapter 7 bankruptcy or a Chapter 11 bankruptcy depending on its goal. If a business seeks to remain open and needs help to restructure its debt it could file a Chapter 11 bankruptcy. If there is no feasible route forward and a business is going to close it would file a Chapter 7 bankruptcy.

Chapter 7

A Chapter 7 bankruptcy is a good way to close a failing business. Upon filing a Chapter 7 bankruptcy, the business must cease all operations. A Chapter 7 Trustee will be assigned to the case and it will be his/her job to liquidate any assets and obtain any funds he/she can, and then distribute the funds to the creditors per the Bankruptcy Code. It is important to determine if the owners/officers of the business have personal liability for some of the business debts, because he/she will still be obligated on that debt.

Chapter 11

A Chapter 11 bankruptcy is a tool to reorganize debts. Congress enacted a new type of Chapter 11 bankruptcy, a Small Business Subchapter 5, which went into effect in February 2020. The new Subchapter 5 allows small business to rewrite contracts, negotiate with creditors, and address unsecured debt in a more streamlined and cost-effective manner than the traditional Chapter 11 bankruptcy. The whole process can take less than five months from filing to confirmation.

To qualify as a Small Business, the person or business must be “engaged in commercial or business activities”, at least 50% of the debt must be from business activities, and it must owe less than $2,725,625.00. The CARES Act increased the debt limit to $7,500,000.00 for a one year time period, which will allow many more businesses to qualify. During the Subchapter 5 bankruptcy process the business will continue its day to day operations and a Trustee will be assigned to the case to review all the claims, provide information requested by creditors, help to develop a consensual Plan with the creditors, and make a final report to the judge. The goal is to create a Plan to address all of the debt, which may include refinancing, renegotiating contracts or leases, selling assets, and repaying a portion of debt over a three to five year period.

At The Law Firm of Ullian & Associates, P.C., we represent small businesses throughout Massachusetts in bankruptcy. Contact us and our experienced bankruptcy lawyers can meet with you to recommend a solution to provide you peace of mind.

Thinking about a business bankruptcy? | Free Consultation

To schedule a free consultation to discuss your options for a fresh financial start with an experienced bankruptcy attorney, contact the firm online or call 781-848-5980.

The Law Firm of Ullian & Associates, P.C., is a debt relief agency. The firm helps people file for bankruptcy relief under the Bankruptcy Code.

Bankruptcy

What Our Clients Say

S.T.

” Thank you Amy…I really cannot thank you and John enough for your help. The two of you really are awesome. “

V.B.

” —- and I are so blessed to have yourself and John on our team. I know you hear that all the time, and maybe this is just a job to you but, — and I always talk about how professional, patient and personal you have been with us. Thank you!! John and yourself literally put us back on track with our lives. “

D.J.

” Dear Attorney Ullian – Thank you so much for all the legal help and advice that you have given me. … It has been quite a while since I’ve actually been able to see a light at the end of the tunnel. However, with your assistance that light is beginning to shine much brighter. … “

S.D.

” Dear John – As Thanksgiving approaches, I always reflect on my life during the prior year to determine what situations or individuals I owe thanks to – and believe me, you are at the top of my list! John, I hope I can express to you, my gratitude for the tremendous change that has occurred in my life within these past six months … since my [bankruptcy] filing, I have made every effort to look toward the future – towards a life that would have been impossible without your help. … “

D.O.

“ John, thank you very much for all your help during my divorce. You truly made this stressful situation go smoothly. … ”

C.G.

” A note to thank you for your expert advice and guidance through my bankruptcy procedure. … Today I am debt-free and am able to maintain my household, the way I enjoy. … I now have great peace of mind.”

C.P.

” Dear John – I just want to express my sincere thanks and gratitude to you for representing me in the manner that you did. I always felt you had my best interests at heart and guided me both as a fellow father as well as my attorney. Your advice and wisdom were comforting during this emotional process. … “

A.B.

” Dear John – I want to thank you for helping me through a difficult time in my life. I couldn’t have gone through it without your help. “

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