The Basics of Business Bankruptcy in Topeka, KS

by | Sep 12, 2017 | Lawyer

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There is a negative stigma about bankruptcy that’s not deserved. Wealthy business owners tend to declare business bankruptcy fairly frequently. In broad strokes, bankruptcy is an admission that you will not conceivably be able to repay the debts you have incurred. Those debts might be the result of your profits not being as high as you anticipated or unpaid invoices to customers. For contractors and other service business, unpaid obligations from customers is a very common problem. When you deliver service and then bill the client, your income depends on the client actually paying the invoice. It’s not always the case. If you are having trouble with paying off your obligations, you need to hire an attorney.

Different Chapters

There are many different chapters of business bankruptcy in Topeka, KS. The different kinds of bankruptcy come from the many different ways to repay your debts. For example, chapter seven bankruptcy is usually referred to as liquidation. Under a chapter seven bankruptcy, you will sell off the business and use that to pay off as much of your debts as possible. This type of bankruptcy is most appropriate for small businesses that don’t have many assets, to begin with.

You can contact us today if you have questions about different chapters. The different chapters will be appropriate for the different type of business and business owners.

Chapter 11

Chapter 11 bankruptcy is by far the most well-known chapter of bankruptcy. In contrast to liquidation, you can still retain your business after chapter 11. Chapter 11 bankruptcy is the reorganization of your assets. Typically, the business is reorganized, some assets are sold off, and placed under the leadership of a trustee appointed by the court. You need a business bankruptcy attorney in this case, to ensure that the trustee is someone you can actually trust; in many cases, you can actually be the trustee.