AZ Arizona Business Blog

When a businesses in a Chapter 11 bankruptcy filing, before a final decree is granted the court may make a determination that the business needs to file under a different chapter. The other way for a business to file bankruptcy to wipe out debts is under Chapter 7. With a business bankruptcy it’s best to hire a bankruptcy attorney to help. Some companies who are doing very poorly may want to consider filing Chapter 7 bankruptcy in an effort to liquidating assets and paying off all the creditors. Assets can include anything that has any value including property. A debtor will need to supply the court with a list of assets and liabilities along with the current income and current expenses of the business. A qualified bankruptcy attorney can direct the business owner in compiling this list. In Chapter 7 bankruptcy, the debtor will have to pay a filing fee to the court, an administrative fee, and a trustee surcharge fee. In addition, the debtor will have to supply the list of creditors and all the amounts owed to them. Other things needed are a current list of all property owned, monthly expenses in detail and all sources of income. All the bankruptcy forms are available on the Internet for anyone to download. In a Chapter 7 bankruptcy property can be saved from the liquidation process by using exemptions for this state do you reside in. A bankruptcy attorney should know the laws local to the business owner pertaining to all exemptions by the federal government and by the state government.

Comments Off