Experienced Monroe Business Bankruptcy Attorneys

As a business owner, it is your responsibility to oversee the operations of your company. Whether it be a large corporation or a small business, the ultimate goal is for it to grow. But this can become an increasingly difficult task when you’re missing creditor payments and have loans going into default. Seeing your business go down an unfavorable path can be a difficult thing to accept, which is why many individuals fail to take action sooner.

The idea of filing for bankruptcy may seem disadvantageous as closing your doors for good was never the plan, but that does not necessarily have to happen. A Louisiana corporate bankruptcy attorney at E. Orum Young Law Offices can discuss your bankruptcy options and serve as your legal counsel throughout the process.

When To File for a Business Bankruptcy in Louisiana

Just as there are many reasons individuals file for bankruptcy in the state of Louisiana, there is also a variety of reasons businesses will file for bankruptcy. Whether large or small, every business owner knows when they open a business there’s a chance it will not make it. However, no business owner expects they will need to file bankruptcy to stay afloat.

One of the most telltale signs you might need to file bankruptcy is if you’re taking on more debts to pay your current debt. If you currently find yourself paying bills with credit cards or applying for loans to pay employees, you’re likely in need of assistance.

Talking with a trusted bankruptcy attorney near you is the best way to determine whether or not filing for corporate bankruptcy is the best idea for your business. A good bankruptcy attorney will be able to examine your business’s financial situation and discuss your available options.

Bankruptcy Options for Corporate Entities & Small Business

Many bankruptcy myths cloud the thoughts of business owners throughout Louisiana. Influenced by them, many business owners delay necessary legal action and allow their business to go further into the negative. Through an in-depth consultation with a seasoned legal professional, you will come to realize that there are numerous debt-relief options you can pursue. These include:

• Chapter 11 Bankruptcy: Commonly referred to as reorganization bankruptcy, Chapter 11 is most suitable for corporations and small businesses. It provides temporary relief from creditors as you negotiate a plan to repay a portion or all of your creditor debts. This option allows you to keep your business open during the process.
• Chapter 7 Bankruptcy: In Chapter 7, your business must sell assets to repay creditors and lenders. This option often requires business owners to close the company.
• Chapter 13 Bankruptcy: Chapter 13 is most suitable for sole proprietors. This option allows business owners to eliminate, restructure or reduce unsecured debt and restructure secured debt.

Businesses often benefit most from Chapter 11 bankruptcy as it can effectively eliminate debt from their bottom line while allowing them to continue business operations. Although this avenue tends to be more expensive than Chapter 7 and Chapter 13, it offers the greatest reward for business owners who want to keep their doors open. With your legal options outlined, it is essential that you speak with a local bankruptcy lawyer who can guide you through the process.