Small Business Owners
Small business owners face many tough challenges in today’s economy. Despite their best efforts, sometimes these challenges can become too significant to overcome. In such situations, small business can turn to bankruptcy proceedings to help them start over, much like an individual can do. This may involve liquidating your assets, getting clear from debt, and moving on with your life. Or you may wish to try to recover what remains of your business and give it another shot. Okemos bankruptcy attorney Steven M. Feigelson understands the unique challenges that small businesses face. He has helped clients throughout the Lansing area, including Dewitt, Charlotte and Howell, to navigate their bankruptcy needs.Small Business Bankruptcy Options
Small businesses owners in Michigan considering declaring bankruptcy have three options available to them. They may choose to liquidate their assets and “start fresh” through Chapter 7 bankruptcy. They can also attempt to set up a repayment plan for debts through a Chapter 13 bankruptcy. When your personal assets are closely linked to your small business, such as when you have mortgaged a home to obtain financing for your venture, Chapter 13 can be a good option for you because it allows you to hold onto those personal assets. However, Chapter 13 is only available to small businesses operated by a sole proprietor.
Another bankruptcy option typically reserved for businesses, including small businesses, is a Chapter 11 bankruptcy. Attorney Steven M. Feigelson is well versed in the nuances of this process, and can walk you through the details to help you evaluate whether this is the right option for you. In short, Chapter 11 bankruptcy is known as a “reorganization.” It gives a business a limited amount of time under the protection of the bankruptcy court to attempt to reorganize its assets and financial obligations so that it can continue to operate. During this time, the small business is “protected” from creditors attempting to collect on outstanding debts. If, after the allotted time, a small business is not able to successfully reorganize, the Chapter 11 bankruptcy will be converted to a Chapter 7 proceeding.Advantages of Chapter 11 Proceedings
Chapter 11 bankruptcy can be appealing to a small business because it allows the business to remain in control of its property and assets during the development of a reorganization plan. Trustees are typically not assigned under Chapter 11, unless there is a for cause reason for doing so (such as a history of fraud). Chapter 11 also gives the business an opportunity to reorganize and recover, rather than completely dissolving the business for purposes of repayment. However, Chapter 11 can be more complicated than other bankruptcy proceedings and can involve multiple challenges from existing creditors. A qualified Michigan bankruptcy attorney can help guide you through this process.Helping Small Businesses Stay Afloat
Michigan bankruptcy attorney Steven M. Feigelson is a veteran of the corporate world and understands the many day-to-day challenges and risks that small businesses face. He has helped many Michigan business owners navigate the complexities of dealing with creditors and outstanding debt, and can help advise you of what bankruptcy options may be available to you. If you or a loved one are considering filing for bankruptcy for your small business, contact us at 517-333-3373 or online for more information or to schedule an initial consultation.