New York City Business Bankruptcy Lawyer
If your business is struggling and can’t meet its financial commitments, bankruptcy offers a way to restructure your debt, finances and business dealings to get on top of your financial situation and put your company on a path toward more successful and profitable operations. If the business is failing, bankruptcy likewise offers a path to an orderly business closure that doesn’t leave you holding the bag and exposed to liability from company creditors. New York City business bankruptcy lawyer Harry D. Lewis has over 40 years of experience in bankruptcy law, including handling bankruptcy litigation and Chapter 11 reorganizations as a senior associate in major corporate law firms from New York to Miami.
Learn more below about how Chapter 11 or Chapter 7 business bankruptcy might be of benefit to help you out of your financial straits. To discuss your unique needs and receive professional representation and technical assistance, call the Law Office of Harry D. Lewis in New York at 914-473-5736. We offer a free consultation to learn about your situation and let you know how we can help.
Chapter 11 – Restructure Your Business
By filing Chapter 11, your company receives protection from creditors while you remain in business and engage in a restructuring process under the supervision of the bankruptcy court. Debts can be adjusted as part of the Chapter 11 reorganization plan. Your plan must take the interests of creditors into account, and certain business decisions will require supervision and approval of the court or a bankruptcy trustee. Once you fulfill the terms of your reorganization plan, your company will be able to make a fresh start without being saddled with debt. Companies often exit Chapter 11 leaner and more efficient, on a more solid footing and a surer path toward profitability.
Chapter 7 – Wind up Operations Efficiently
A failing business isn’t always worth saving. You might decide to walk away and pursue other opportunities or perhaps decide it is time to retire. Whatever the reason, there is a right way and a wrong way to close up shop. By filing Chapter 7, you’ll wind down business operations in an orderly fashion. Chapter 7 gives you a process to liquidate what business assets you do have to put toward company debts, while also putting your creditors on notice that the business is closing. Using Chapter 7 helps you avoid a multitude of lawsuits or collection activities and keeps you from being exposed to further liability for business liabilities.
Chapter 13 – For Closely-Held Businesses
Chapter 13 is a bankruptcy chapter reserved for consumer bankruptcies – individuals with primarily consumer debt rather than business debt. However, Chapter 13 might be available and appropriate for certain sole proprietorships or closely-held and family-owned businesses. Small family farms or fishing operations can also find relief from Chapter 12. New York bankruptcy attorney Harry D. Lewis can help you explore your options and advise you on whether Chapter 13 or other options make sense in your particular situation.
Subchapter V – A New Option for Small Business Debt Relief
Chapter 11 bankruptcy is a complex process that has traditionally been viewed as a last resort for struggling businesses. Under the Small Business Reorganization Act of 2019 (SBRA), Congress enacted a new subchapter V within Chapter 11 that makes bankruptcy easier for small businesses, giving them more flexibility in the way they restructure and allowing them to exit bankruptcy more quickly. This law went into effect in February 2020 and initially applied to companies with less than $2.7 million in debt. However, in March, Congress raised the debt limit to $7.5 million as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). This change significantly expanded the number of businesses that can now benefit from the streamlined approach to Chapter 11 bankruptcy under the new provisions of subchapter V.
Immediate Advice and Assistance for New York City Business Bankruptcy and Debt Relief
If your business is struggling, it’s good to know that help is available, no matter how you decide to proceed. Talk to an experienced New York City business bankruptcy lawyer to explore your options and make the best decisions for your specific situation. In New York, call the Law Office of Harry D. Lewis for a free consultation at 914-473-5736.