Orlando Business Bankruptcy

Orlando Business Bankruptcy Attorney | Orlando Bankruptcy Law Firm | Business Bankruptcy: Liquidation or reorganization?

Orlando Business Bankruptcy Overview:


• Filing Bankruptcy for small businesses in financial trouble

• Corporation, partnership, or proprietorship?

• Reorganization or liquidation?


Orlando Business Bankruptcy Details:

Filing Bankruptcy for small businesses in trouble

Small Business Bankruptcy may be the most responsible way to alleviate financial debt without losing everything. Some of the most successful businesses need to file for bankruptcy at some point, especially with Orlando and many cities across the country with economic troubles. Though this action is never desired. The damage done to commerce credit can affect a person’s whole life if partnerships and assets are not appointed correctly. Understanding the different ways to file is crucial to the success of any company and personal reputation. At our Orlando Business Bankruptcy Law firm, we will ensure that you understand your options so you can make an informed decision. We can also discuss alternatives to filing for bankruptcy.

Corporation, partnership, or proprietorship?

Corporations and partnerships are legal entities separate from their shareholders or partners, and can file Chapter 7 or Chapter 11 Business bankruptcy in their own right. Be aware that in a partnership's Chapter 7 Business bankruptcy, the trustee can sue the general partners of the partnership if the partnership's assets are insufficient to pay partnership debts. As a result, partners may be facing a suit by a well-funded trustee suing for the benefit of all creditors of the partnership. Our Orlando Business Bankruptcy law firm can advice before contemplating a partnership bankruptcy. Proprietorships are an extension of the owner and can't file business bankruptcy alone. The proprietor must file the bankruptcy. The individual owner may file a Chapter 7, Chapter 11 or Chapter 13 business bankruptcy (if the debt limits are met).

Reorganization or liquidation? 

Reorganization can't create a market, increase gross revenue or make up for a poor fit between the skills that are available and the skills that are required to run the business. But reorganization can: Free up cash from paying old debt to finance current operations ; Make it easier to reject leases or contracts that are no longer advantageous (like an expensive facility lease or unfortunate equipment purchase); Prevent the loss of vital assets or cash to creditor collection actions. In between Chapter 7 business liquidation and reorganization, a Chapter 13 or Chapter 11 business bankruptcy could provide breathing space for you to sell the business as a going concern or jettison assets in something other than a fire sale. The resulting profit (called "proceeds") could pay taxes or unpaid salaries. Selling the business could mean ongoing jobs for your work force under new ownership. The bankruptcy could then be converted to a Chapter 7 bankruptcy, or dismissed. Orlando BAKER LAW, PL can help you weigh your pros and cons and make you confident in making the right decision.

Call 407-647-8833 or contact us at our Orlando office to make an appointment for a free consultation.

BAKER LAW, PL serves the Central Florida and seven-county Orlando area, including the cities of Sanford, Lakeland, Lady Lake, Kissimmee, Maitland, Lake Mary, Oviedo, Winter Garden, Winter Park, Windermere, Lake Nona, Apopka, Mount Dora, Winter Springs, Longwood, North Orlando, South Orlando, East Orlando and West Orlando, Melbourne, Titusville, Cape Canaveral, Daytona Beach and New Smyrna Beach, and the counties of Orange, Seminole, Lake, Polk, Brevard, Volusia and Osceola.