Grand Rapids Business Bankruptcy
Strategic Solutions for Businesses Facing Financial Challenges
Protecting Your Business and Your Future
When a business faces insolvency, the decisions made in the early stages are critical. Whether your goal is to liquidate assets and close the doors or to restructure and continue operations, Krupp Law Offices P.C. provides the expert guidance needed to navigate Chapters 7, 11, and 13 for businesses.
With over 85 years of experience in West Michigan, we help business owners understand the implications of personal guarantees and the best path forward for their specific industry.
Common Business Bankruptcy Questions
1. Can I continue to operate my business?
This depends on the chapter you file. In Chapter 11, the business typically continues to run as a "debtor in possession" while the reorganization proceeds. In Chapter 13 (for sole proprietorships), you can also continue operations. In Chapter 7, the business usually ceases operations and a Trustee liquidates the assets.
2. Do I have to file personal bankruptcy too?
Not necessarily. However, if you have personally guaranteed business loans, leases, or credit lines, the creditors may pursue your personal assets even if the business files for bankruptcy. We will review your contracts to determine if a joint filing is necessary to protect your personal home and savings.
3. Can I still pay my current suppliers?
Before paying any vendors, you must consult with an attorney. A reorganization plan often involves identifying "critical vendors" who are necessary for future operations. Paying certain creditors right before filing can sometimes be viewed as a "preferential transfer" and may be challenged by the Trustee.
4. How do I pay for legal representation?
You are permitted to use current business assets or income to pay for bankruptcy counsel. In some cases, inventory or equipment may be sold to cover these costs. Because business filings are complex, fees vary based on the size of the company and the amount of debt involved.
The First Step: Your Initial Meeting
To determine the best strategy, please have the following information ready for your consultation:
- Total amount of business debt
- Estimated value of all business assets
- Current monthly profit/loss statements
- List of personal guarantees
Business Resources
Business Consultation
Protect your livelihood with a strategic bankruptcy plan. Call for a free phone consult.
CALL 616-459-6636
