Reorganization and Bankruptcy
Due to the impact of the current health crisis, a business owner may need additional time or an amicable arrangement to pay its creditors. At difficult times like these, it is advantageous for creditors to cooperate with their debtors, including forgiving or postponing the payment of debt. Although working through this current health crisis on our own may be preferable, some businesses may decide to file for bankruptcy to obtain protection from its creditors.
Under the Federal United States Bankruptcy Code, a business can choose between reorganizing under Chapter 11 or liquidating under Chapter 7. However, bankruptcy does not have to be the final act for a business. In many instances, a Chapter 11 reorganization gives businesses the much needed time to restructure its finances in order to meet its obligations. For small businesses, there are new regulations that aim to make bankruptcies faster to administer and less expensive.
Don’t try to go it alone, it’s usually more complicated than you anticipate. Hiring professionals who are adept in all aspects of reorganization and bankruptcy, and have assisted companies in the past, will take the pressure off you, allowing you to attend to your own employees and clients.
Our qualified experts can provide reorganization and bankruptcy services, and should be part of your team helping guide your business during this difficult time. We can assist you with:
- Evaluating your business’ current financial position
- Assisting in preparing budgets and projections
- Providing day-to-day operational guidance and advice
- Preparing a business valuation
- Collaborating with your attorney
- Assisting with the financial aspects of the bankruptcy petition documents
- Preparing the Debtor’s required tax filings
- Preparing monthly operating reports
If you would like additional information please contact your Gettry Marcus Advisor or Mark Warshavsky, the author of this article.