How Chapter 7 Bankruptcy Can Help You Close Down Shop as Easily as Possible
If your business is close to shutting down, it’s easy to be overwhelmed while considering your options. For many people, filing for Chapter 7 bankruptcy sounds like a bad choice because it will often force them to go out of business. Unfortunately, that is sometimes unavoidable. When this is the case, finding the fastest, easiest, and best way to go through this process is very important. In many cases, Chapter 7 bankruptcy is the ideal solution. If you are considering Chapter 7 bankruptcy in Southfield, read on to learn more about this specific bankruptcy solution.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a great option for many corporations and LLCs that are having money issues. It is designed to help liquidate corporate assets and distribute the money to those who it is owed to while providing the business with relief from further creditor claims.
Benefits of Chapter 7 Bankruptcy
Going out of business without the structure of a Chapter 7 can be an extremely lengthy process. In addition, you will have all your creditors coming to you for the money that is owed. Going through this more formal process, however, the courts will help to decide who gets what in compensation and how they will be paid. If the assets of your business are not sufficient to repay the creditors, the courts will also help to decide who gets what money.
Unless you have guaranteed any of the debts personally, the remaining money that is owed will be wiped out when you go through this process. This helps to create a clean end to the business so it is not hanging over your head for years to come.
Knowing When It Is Right
It is important to be sure that Chapter 7 is the right option for your business before you file. Filing limits your ability to sell the business, and it may not be right for everyone. For many people, the best way to determine whether if this is the right course of action or not is to have a bankruptcy attorney review the situation. They can recommend this type of bankruptcy, or others, or even provide further options you may not have considered.
If you are thinking about Chapter 7 bankruptcy for your business in Southfield, make sure you give us a call for a free consultation. We will discuss your situation and advise you on how to best proceed.