Filing for bankruptcy when your business is a very large and important one has some benefits. Although controversy surrounds government bailouts and the question remains whether or not the federal government will ever provide funds to businesses and banks again, the point is that your business can survive past filing for bankruptcy. Here is how.
File for a Chapter 7
A Chapter 7 bankruptcy states that you are completely unable to make any payment arrangements with your creditors from here on out. You have no foreseeable income that can protect your assets and no one who wants to buy your indebted business from you. Because of the size of your business, the filing of a Chapter 7 signals to the government that your company is about to fold and go under, and the debt that remains will be have to be excused, even though it may not resolve insolvency issues. It also means a substantial loss in jobs and needed products or services. The closing of your business leaves a major hole in the economy, especially if some of your competitors follow suit.
File for a Chapter 13 Too
Filing for a Chapter 13 bankruptcy says to the government that you would repay your debt if you could. This is similar to a drowning victim waving his or her hand above his or her head while going under. It is essentially a plea to the government for help to keep going and stay afloat until you can collect on any accounts receivable. You may receive bailout funds from the government in addition to fiscal relief from bankruptcy, although you may have to sign an agreement with the government to repay a portion, if not all, of the bailout funds.
Bailout Funds Find You, Not the Other Way Around
There is no application for bailout funds. In fact, any businesses that may receive such funds do so under legal gag orders. The practice could continue because of the Federal Stabilization Act of 2008. Your bankruptcy lawyer cannot file any paperwork for a bailout, but in the event that the government recognizes your company's situation as a major economic contributor in crisis, they will contact you.
Hiring a Crackerjack Bankruptcy Attorney
The term "crackerjack" refers to someone who is very good at what he or she does. A crackerjack bankruptcy attorney like Kall and Reilly is exactly what you need when your business is about to sink and you feel as though you are grasping at straws. The attorney can help you file for all business-related bankruptcies and organize your debts by amount and creditor. That way, if the federal government chooses to step in and assist you, your lawyer is ready with the organized information. Your lawyer can stop the bankruptcy proceedings at any time. Without all of that debt accruing, and only owing the government what you are contractually obligated to repay, your business can survive bankruptcy and prosper.