Are you a business owner in Kentucky? If so, most likely one of the most important things to you is ensuring the profitability and success of your business. Unfortunately, we live in uncertain times, and you may find it difficult to keep your business up and running without some financial assistance or the help of an attorney. If you’ve run into financial struggles and believe bankruptcy may be the best option for you (bankruptcy doesn’t necessarily mean your business has to close), please don’t hesitate to speak with a competent Kentucky business bankruptcy lawyer from Schwarts Bankruptcy Law Center to learn more about how we can help you.
Business Bankruptcy Lawyer | Here for Businessowners Throughout Jefferson County
If the future of your business is in jeopardy, you have options, but you should only explore those options with a seasoned attorney in your corner. Our firm has over four decades of combined experience representing business owners in a wide array of financial circumstances, and we are here to put that experience to work for you as well. If you need a Jefferson County, Kentucky bankruptcy lawyer you can depend on, you’re in the right place.
Types of Business Bankruptcy
As you may know, there are various types of business bankruptcy available, but the type that’s right for you depends largely on your business’s financial circumstances. Some of the most common types of bankruptcy for businesses in Kentucky are as follows:
- Chapter 7 Business Bankruptcy: Chapter 7 bankruptcy, sometimes referred to as business liquidation bankruptcy, is primarily used when a business is no longer profitable and shows no signs of future growth or profitability. In Chapter 7 business bankruptcy, a trustee will be appointed and you will attend a meeting of creditors. During your meeting, creditors will ask about your company’s income, assets, liabilities, and expenses. From there, your assets will be sold and the proceeds will be given to your creditors.
- Chapter 11 Business Bankruptcy: Chapter 11 bankruptcy is for business owners who want to stay in business, reorganize their debt, and who don’t qualify for any other Chapter of bankruptcy. Once you file, you and your attorney will attend a meeting of creditors and develop a reorganization plan. This will enable you to pay off your creditors at a more manageable rate over a period of time. As long as the plan is approved by the Bankruptcy Court, debts and liens not included in the plan should be discharged.
- Subchapter 5 Business Bankruptcy: Technically, Subchapter 5 bankruptcy is an offshoot of Chapter 11 bankruptcy, but the process is different, and, for many small businesses, Subchapter 5 bankruptcy is optimal. This is because Subchapter 5 offers small businesses a streamlined, less costly version of bankruptcy that ultimately allows them to reorganize their debt structure in a much more manageable way. If you’d like to learn more about Subchapter 5 bankruptcy or believe this may be the right solution for your company, reach out to a business bankruptcy lawyer from our firm today.
- Chapter 12: Chapter 12 bankruptcy is primarily for those who own farms or fisheries and are looking to reorganize their debt through bankruptcy so they can continue to operate. Note that only business-related debt may be reorganized through Chapter 12.
- Chapter 13: Chapter 13 bankruptcy is for sole proprietorships looking to reorganize their debt. We will file a plan within 15 days of your bankruptcy petition. This will be either a three or five-year repayment plan. As long as the plan complies with the Bankruptcy code, the court will have to confirm your plan. Once you complete the plan, you should receive a discharge.
If you believe you qualify for any of the above, or you have any questions about how the business bankruptcy process works, give us a call today or contact us online. Our legal team is here to help guide you through each step of the process ahead.
Contact a Kentucky Business Bankruptcy Lawyer Today
The bottom line is that we understand just how important your business is to you, which is why we are here to do everything in our power to get the results you need. Contact Schwartz Bankruptcy Law Center today to schedule your initial consultation with our seasoned bankruptcy law firm.