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Business Bankruptcy
Massachusetts Business Bankruptcy Lawyer
If your Massachusetts business has experienced a slow down in business, is straddled with a heavy debt, unmanageable leases, or unfavorable contracts; business bankruptcy may be a good option.
Businesses that are organized as a Corporation, LLC or Partnership, are eligible to file a Business bankruptcy in the business's name. The options available for a business are: Business Chapter 7, where the business stops operating permanently, or; Chapter 11, where the business' debts are reorganized in an effort to return to profitability.
If you did not incorporate or organize your business with the Massachusetts Secretary of State, or you're not a partnership, you are a "sole proprietorship." A sole proprietorship is an extension of the owner and cannot file bankruptcy itself. If you own a proprietorship then the individual business owner must file personal bankruptcy. For more information on personal bankruptcy, visit our Personal Bankruptcy Page.
At Grantham Law we have been helping businesses get debt relief in the Bankruptcy Court for over eighteen years.
Business Bankruptcy Options
If your Massachusetts business is a corporation, a partnership or LLC, our business bankruptcy attorneys can advise you on one of the following topics.
Business Chapter 7:
Going Out of Business
In a Chapter 7 Business Bankruptcy, the business stops doing business and closes its doors. The Bankruptcy Court will appoint a Chapter 7 trustee who will collect and sell the business assets that are not encumbered by a lien. After the Bankruptcy Trustee sells the business assets, the bankruptcy trustee will use the proceeds to repay the business' unsecured creditors. If the business has secured debts, then the secured creditors are entitled to collect their collateral that is secured by their debt.
Benefits of a Chapter 7
- - Easy and orderly liquidation of the business.
- - Business owners can walk away while Trustee liquidates.
- - Finality for creditors and business owners.
- - Lower cost than a Chapter 11.
Business Chapter 11:
Reorganization
If a business would be profitable if it weren't for a heavy debt load; a Chapter 11 Bankruptcy could be the best option. A Massachusetts Chapter 11 Business Bankruptcy is a reorganization proceeding. A business that files a Chapter 11 Bankruptcy continues to operate while attempting to restructure its debts.
Benefits of a Chapter 11
- - Business owners continue to operate the business during the Bankruptcy.
- - Creditors cannot take collection action against the business during the Bankruptcy.
- - Loan terms and interest rates can be modified.
- - Rents & Installment payments can be deferred.
For Immediate Business Bankruptcy Assistance
If you or your business is facing a legal challenge that calls for sound advice and skilled representation, contact us today to arrange a FREE consultation with an experienced Massachusetts attorney.
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