Knowledgeable Anaheim Chapter 7 Business Bankruptcy Attorney

Deciding to file for Chapter 7 bankruptcy is a monumental step. With guidance from the Law Offices of Nicholas Gebelt, you’ll understand if this route fits your business’s needs. Consider the following key elements:

• Liquidation Insights: Once Chapter 7 is filed, business activities cease, and a trustee takes charge. The Trustee’s primary role is to liquidate assets and use the proceeds to pay off creditors.
• Legal Guidance: By working with Nicholas Gebelt, you’ll conduct prefiling planning. You’ll also have continual support as you file required documentation, maintaining strict adherence to the law.

Navigating The Chapter 7 Bankruptcy Journey

The Chapter 7 bankruptcy proceeds through several stages:

1. Financial Examination: We’ll start by collecting all financial documents and conducting a comprehensive evaluation to be sure that Chapter 7 is the right chapter for your business.
2. Preparing And Filing The Petition: Mr. Gebelt will ensure your documentation is properly prepared, well-worded, and submitted to the Bankruptcy Court.
3. Handling Liquidation: Post-filing, a trustee manages the liquidation of business assets. If you have questions or concerns, your attorney will address them.
4. Closing the case: After asset liquidation and creditor repayment, the Court will close the bankruptcy case.

• For two reasons, your business will not receive a Chapter 7 discharge. First, the Bankruptcy Code states that only individual debtors are eligible for a Chapter 7 discharge.  Second, at the completion of the case, the business will cease to exist.  The Court does not grant discharges to nonexistent entities.
• If you, as the owner, have personal liability for any of the business’s debts, you will still have liability to the extent that the liquidation did not pay the creditors in full.

Why then file the Chapter 7 case?  If your business has large debts and significant assets, but you don’t want to do the work of liquidating the assets and paying the creditors from the sale proceeds, you can put your business into a Chapter 7 bankruptcy, and let the Chapter 7 Trustee do the work.

Sometimes it makes more sense to do a Chapter 11 business bankruptcy.  Chapter 11 involves propounding a plan of reorganization through which the business can service the debts over time.

When we analyze your business, we will determine which of these two options is best for the business.

Law Offices of Nicholas Gebelt

Call us today at (562) 777-9159 to discuss your options.  The Law Offices of Nicholas Gebelt are ready to help.