If you live in Phoenix and are in need of an Phoenix Bankruptcy attorney to assist you in your Phoenix Chapter 11 bankruptcy claim, contact the offices of Bill King.
One of the major crises one faces in his or her adult life is what to do when your business in which you have invested so much of your time, money and sweat is in financial trouble and in danger of failing. While many options exist such as selling the business, borrowing more money, bringing in investors or business partners, or hiring a business consultant, you also need to know about your options under the Bankruptcy Code. Businesses have three basic options under the Bankruptcy Code: liquidation under Chapter 7 or reorganization under Chapter 11 or Chapter 13.
In both the Phoenix Chapter 11 and Phoenix Chapter 13 bankruptcies, your business files a reorganization plan that states how your business will repay its debt. The plan, which must be approved by the Phoenix bankruptcy court, generally provides for full repayment of the debt over time, although in the appropriate circumstances a plan may provide for less than full repayment of your debt. When an Phoenix Chapter 11 or Phoenix Chapter 13 bankruptcy is filed, an injunction called the automatic stay is automatically issued by the Phoenix bankruptcy court. The automatic stay prevents most collection activity against your business unless your creditor first obtains permission from the Phoenix bankruptcy court, a difficult and time consuming process. The automatic stay stops collection letters and telephone calls, lawsuits, garnishments, repossessions, foreclosures and even tax levies until the court has approved your plan or lifts the automatic stay. Your business must continue to pay its operating expenses after the filing of the bankruptcy; however, except for certain secured debts, you normally do not make any payments on the rest of your pre-bankruptcy debt until after your plan is approved. Thus, the Phoenix Chapter 11 and Phoenix chapter 13 bankruptcies give you breathing room to reorganize your business and pay your debts in an orderly fashion.
Whether an Phoenix bankruptcy is the right choice for your troubled business is a decision you should make only after consulting an experienced bankruptcy attorney. Congress passed the Bankruptcy Code with specific provisions for businesses because it realized that our society runs smoother if businesses are offered ways out of their financial difficulties rather than just being forced to close down. It is a federal right that you have which, under the appropriate circumstances, could be what you need to save your business.
