In Missouri, businesses could face the need for a bankruptcy depending on possible losses. These losses could equate to excessive debts that are interfering with business operations. They could also lead to a foreclosure in more serious instances. The following are opportunities presented to businesses by business bankruptcy lawyers.
Preventing a Foreclosure
The attorneys can help the company avoid foreclosure by filing for bankruptcy. These cases enable the company to pay off their debts through liquidation. The process involves the sale of specific assets that will generate enough proceeds to pay off these debts. This doesn’t mean that the company has to sell all their assets. The court will help them identify what properties can accumulate the most profits without shutting down the business.
Keeping the Company Operating
If the company chooses chapter 7 bankruptcy, they can continue to operate their business during the bankruptcy. If they choose chapter 11, they are required to stop operating the business until the bankruptcy process is completed. The choice to acquire chapter 7 is established according to the company’s ability to qualify for this type of bankruptcy.
Paying Off All Debts Quickly
The liquidation process takes up to six months to complete. An officer of the court or trustee is assigned to the case to manage the sale of all properties and distribute the proceeds to creditors. The company will receive a value based on the exempted value of each asset. The court will define these exemptions based on current bankruptcy laws.
Lowering the Effects on the Company’s Credit
The company can lower the effects of the case on their credit by paying off these assets at an accelerated rate. If they are aware of investors who want to purchase these properties now, they can complete the sale without interruptions.
In Missouri, businesses have the option to file bankruptcy to prevent serious issues. These options allow them to use liquidation to pay off large volumes of debt quickly. This enables them to continue operating the business and manage their debts more proactively. Owners who need to hire business bankruptcy lawyers for these purposes visit Stlbankruptcyfirm.com for more details now.
