0
When companies file for bankruptcy, there exist many legal issues to resolve. Consultation with an experienced bankruptcy attorney is critical. Choosing how to file and what statute to file under are questions often determined by the legal structure of the company. Businesses may be sole proprietorships, partnerships, or corporations. Special corporation structure entails different handling, such as S corporations.
Types of Bankruptcy for BusinessAn attorney can help analyze a company's financial situation and make recommendations. If the attorney and business owner or company officer decide bankruptcy is the best solution, then they must determine which bankruptcy alternative would be most beneficial. The following types of bankruptcy may be filed by businesses.
- Chapter 7 Bankruptcy. This form requires total liquidation of the company and all assets. If the company just wants to close its doors, then this might be the best solution. Large companies might just sell off assets, and they could continue to operate at a reduced level. A trustee is appointed to oversee the liquidation and pay off creditors.
- Chapter 11 Bankruptcy. This form is a reorganization. The firm continues to operate under protection against creditors' claims. Owners negotiate and formulate a plan to satisfy creditors. In corporations, creditors often end up with common stock as part of the settlement.
- Chapter 13 Bankruptcy. This form of bankruptcy applies to individuals, but it often makes sense when a sole proprietorship owner's business and personal finances are inextricably linked.
Corporate assets are distributed according to a specific formula. Secured creditors get paid first. If there is any money left, then unsecured lenders are paid. Stockholders are at greatest risk, and they only get paid if there are assets left after paying legitimate debts. Stocks are risky, and investors can lose everything. Bondholders are considered lenders, and they have a greater chance of recovering some of their investment. Stockholders are company owners, and their stock is completely at risk.
Attorneys Provide Financial ExpertiseChoosing the correct form of bankruptcy can be challenging, and attorneys can help analyze complex balance sheets, financial forecasts, and other data to help determine the proper course. Chapter 11 reorganization allows courts to excuse some debts, but others must be repaid. Preparing a plan that the creditors or court will accept requires sound knowledge and negotiating skills that attorneys provide. Many companies emerge from Chapter 11 Bankruptcy stronger than before. Reorganization allows companies to shed debt and streamline operations to retain only the most profitable operations. Good legal advice is invaluable for struggling firms facing bankruptcy.
What else can I help you with?
Can you use in-depth in a sentence please?
He did an in-depth analysis of the companies budget.
Is indepth analysis hyphenated?
It is never one word: there is no such English as "indepth." But you should definitely separate the words "in depth," or more commonly, put a hyphen between them: "in-depth analysis." This is probably more correct because "in-depth" is a compound adjective (this occurs when two words are put together with a hyphen to form an adjective; other examples are "well-deserved" and "long-awaited").
Why do you consider accounting as language of business?
Accounting information helps us to throw light on the overall functioning of the business. With the help of Accounting we gets indepth analysis about the businesses financial position
How do you spell in-depth?
indepth in depth
What is audit indepth?
when any suspesion arises the auditor will go into the deep check means go through the all material facts this deep processing is called audit indepth
What is the advantages for using frequency domain analysis?
frequncy domain 1- gives indepth information of signal 2-complxity is also reduced bec. calculation become easy 3-more noise elemination in it. 4-less power wastage
What is the correct spelling of indepth?
There is no such whole word. It is actually twoseparatewords, in depth.
Why is it i cannot find the indepth research of mr Jenkin jenkins who daughter was Hannah married to George truscott please?
This may or may not help but it is a more indepth page than others I could find. Good luck!
Where can I find information on auto loan rates?
You can actually get loans for your car from any bank, or company that supplies loans, but you want to be specfic, then you should try out bank rate and then search auto, and they would give you a more indepth information about taking out the loan.
What does it mean to cream your pants?
Listen to the song "Jizz In My Pants" by The Lonely Island for an indepth explanation.
What concept or principle requires layered complementary controls sufficient to detect and deter infiltration and exploitation of an organization its information systems and its facilities?
The security indepth concept
How do you change airline on Microsoft Flight Simulator 2002?
fstipsandaddons has a great indepth tutorial for adding textures and models
