Kentucky Business Bankruptcy Lawyer
BANKRUPTCY: A CLEAN SLATE
Initial reactions to the idea of bankruptcy are often negative, but they shouldn’t be.
Bankruptcy laws are intended to give a fresh start to those people and businesses who find themselves drowning in large amounts of debt. The process is designed to help eliminate or repay debt under federal guidelines.
The protection available to your business depends on its type. Whether you are part of a sole proprietorship, a partnership, a corporation, or a limited liability company, the KY bankruptcy law firm of Bunch & Brock can help. We view bankruptcy as an opportunity for a new financial beginning, and we have helped thousands of consumers and corporations lower the amount of debt they owe (often eliminating it completely) while increasing the period of time in which the debt has to be paid.
WHAT WE CAN DO FOR YOU
At Bunch & Brock, we are familiar with every aspect of debtor and creditor issues, in and out of a bankruptcy setting, and we are committed to supplying you with the services you need to secure a better financial future. Following the lead of founding member W. Thomas Bunch, who has over 40 years of experience representing financially distressed companies, the entire firm stays informed of the constantly evolving bankruptcy laws and makes the most out of the opportunities afforded by them.
If you’re wondering whether bankruptcy is right for your business or if you are a creditor unsure of your rights, arrange an initial consultation with a Kentucky business bankruptcy lawyer at Bunch & Brock by calling 859-353-6883 or filling out our online form.
Running a business is not easy and neither is navigating the complexities of bankruptcy law. While you may have heard of a “Chapter 7” or a “Chapter 11” bankruptcy, did you know that there are actually five types of bankruptcies outlined by the federal Bankruptcy Code? The numbers refer to corresponding chapters that address different situations and offer different relief. Corporate bankruptcies are most commonly filed under Chapters 7 and 11.
CHAPTER 7 BANKRUPTCY — LIQUIDATION
Chapter 7 is the most frequent form of bankruptcy filing and is also one of the fastest ways to start over. The main principle of Chapter 7 bankruptcy is liquidation, which means that the business stops operating and anything it owns is turned over to a trustee for sale. The proceeds are paid out to the business’s creditors to satisfy as many debts as possible, including lease obligations, credit cards, loans and contracts.
Personal liability for business debt is not erased by a business bankruptcy – it can only be discharged through a Chapter 7 personal bankruptcy or by negotiating a settlement with the creditors.
If you are the sole owner of a corporation or LLC, or if you are involved in a partnership, the intricacies of bankruptcy law make it crucial that you speak to a lawyer if you’re interested in filing a business bankruptcy. Proceeding without skilled legal representation could cost you even more than what you already owe.
CHAPTER 11 BANKRUPTCY — REORGANIZATION
In contrast to liquidation, the main principle of Chapter 11 bankruptcy is reorganization, which means that the business is given a certain period of time to pay back its debts under better terms. By filing for Chapter 11, a distressed business may be able to rehabilitate itself while staying largely under the control of the business owner. An experienced attorney can help businesses reorganize their debts on more favorable terms and come out of bankruptcy with a refreshed financial outlook.
LIQUIDATE OR REORGANIZE?
Choosing whether to liquidate or to reorganize is a challenging decision, and the best answer varies with each set of circumstances. There are many factors to consider, including whether the business is making money (where the primary difficulties are due to temporary causes), whether the business has more assets than liabilities, and whether you are personally liable for the business’s debts. At Brunch & Brock, we’ll evaluate your situation with you and explain your options.
The transparent liquidation of a business’s assets allowed by Chapter 7 is only one way that companies can come to an end. For those who conclude that their business has no future, a plan for closure should be put in place and dissolution papers should be filed. The steps that go into closing a business are just as important as those for opening one, especially if you ever want to go into business again. In addition to protecting your reputation, proper dissolution will officially terminate your business – and the liabilities inherent in its operation.
Whatever the reason that your business is closing, the Lexington, Kentucky, lawyers at Bunch & Brock, PSC will examine your situation closely and help you craft a viable dissolution plan so that you can be confident in the decisions that are made. We will assist you in properly collecting any assets owed, discharging any liabilities, disposing of property, cancelling licenses/permits, ending employee relationships, closing bank accounts, and filing tax returns.
CONSULT AN EXPERIENCED BUSINESS BANKRUPTCY ATTORNEY
Serious financial problems require serious legal representation. Over the past 35 years, we have eliminated hundreds of millions of dollars of debt for our clients and have worked hard to protect the best interests of hundreds of business clients.
Bunch & Brock is committed to providing each of our clients with a high level of personal service and real solutions to financial troubles. If you are a business owner who is considering filing for bankruptcy or if you want to know more about the process, contact Bunch & Brock Kentucky business bankruptcy lawyers today to schedule a consultation. We will assess your situation, explain the rules and help you determine whether bankruptcy is right for your circumstances.
Senior partner W. Thomas Bunch has been lead counsel in numerous high-profile cases, for clients such as Samaritan Hospital, Foodtown Supermarkets, Dawahare’s, Dixie Belle Dairy, Stardust Yachts, Classic Oil & Gas Co., and many coal companies, including Cook & Sons Mining, Inc., Earnest Cook & Sons Mining, Inc., Kanawah Development Corporation and Southern Eagle Energy, LLC.
We can represent the debtor-in-possession, secured creditors and unsecured creditors’ committees in corporate bankruptcies. We also accept cases involving various adversary proceedings, such as discharge litigation and defense of bankruptcy preferences.