Grand Rapids Business Bankruptcy
Strategic Solutions for Businesses Facing Financial Challenges
Protecting Your Business and Your Future
When a business faces insolvency the early decisions matter. Whether you want to liquidate or reorganize, Krupp Law Offices P.C. provides experienced guidance for Chapters 7, 11, and 13. We review personal guarantees, cash flow, and the viability of continuing operations.
Common Business Bankruptcy Questions
1. Can I continue to operate my business?
It depends on the chapter. In Chapter 11 the business usually continues as "debtor in possession." In Chapter 13 (sole proprietorships) operations may continue. In Chapter 7, the business often closes and a Trustee liquidates assets.
2. Do I have to file personal bankruptcy too?
Not always. But if you personally guaranteed business debts, creditors can pursue personal assets. We'll review guarantees to determine if a joint filing is necessary to protect personal property.
3. Can I still pay suppliers?
Consult an attorney before paying vendors. A reorganization may require preserving certain "critical vendors," and recent pre-filing payments can be challenged as preferential transfers.
4. How do I pay legal fees?
Business assets or current income can cover counsel. In some cases inventory or equipment sales fund representation. Fees vary with complexity and company size.
Initial Meeting — What to Bring
- Total business debt
- Estimated value of business assets
- Recent profit & loss statements
- List of personal guarantees
