One of the big questions…
When to file bankruptcy?
Small Business Reorganization Act. It was enacted 2019 – Sub V. 7.5 million dollars, current debt limit. Your lawyer will tell you what type of debt qualifies.
Or Chapter 11.
Maybe — Chapter 7.
When do you file for bankruptcy? When the Grim Reaper comes calling? Too late!
You file for bankruptcy when it makes sense.
You file for bankruptcy to reorganize your company.
You file for bankruptcy when there are no other alternatives.
First — you try to work out your debt out-of-court. You always try to do everything you can to stay out of court.
Bankruptcy’s the last alternative.
If you can do an out-of-court workout, that’s what you’re trying to do. It’s cheaper. It’s more efficient. If you can’t do an out-of-court workout – either certain creditors can’t be reached, or some of your debt just can’t be restructured out of court – bankruptcy is available.
Maybe you are a candidate for an SBRA case – a Sub V as some people like to call it. And that’s a fast and efficient process.
Maybe you need a Chapter 11. Or maybe a liquidation, and you’re going to do a Chapter 7.
Maybe you were going to use one of the State Court Proceedings, an ABC (Assignment for Benefit of Creditors) or a state court receivership. Or maybe your counsel and advisors have come up with some other structure for you, either in-court or out-of-court. But the point is, you don’t want to make any of these decisions without having professionals involved. These are difficult choices. And there are a myriad of options.
Where can you go to find qualified counsel and advisors:
- Your local Bar Association
- ABI – The American Bankruptcy Institute
- CLLA – Commercial Law League of America
They each list professionals that focus their practices in these areas.
SmallBizReorg. We’re here for you.
