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770-609-1247 | Chapter 7 Business Bankruptcy

Call 770-609-1247 to Speak With an Experienced Cumming, Georgia Bankruptcy Attorney.

Quality of service and competence matters. We have over ten years of experience helping hundreds of people and businesses deal with crushing debt. Under the bankruptcy code you can obtain immediate debt relief. Let us help you.

Chapter 7 Business Bankruptcy

Commonly referred to as a bankruptcy liquidation, this bankruptcy route for a business is appropriate when a business has no prospects for future success as a profitable business and lacks substantial assets.  Because of this, Chapter 7 business bankruptcies are most often best suited for a sole proprietorship or a small business.  Under a Chapter 7 business bankruptcy case, the Bankruptcy Trustee will sell all of the business assets to satisfy outstanding debts in an organized manner, paying priority creditors first (e.g. taxes and employee benefits) before general unsecured creditors.

Another way of viewing a Chapter 7 Business Bankruptcy is that the business is going for a a “straight bankruptcy” – that company is in fact “belly-up” and the owners can consider all their investments in the business as gone.  However, if the owners of a business are also creditors of the business (by virtue of having loaned the business money) – the owners can file a proof of claim along with the other creditors.

Again, the company’s assets are liquidated by the Bankruptcy Trustee and the money raised by the selling of the business’ assets is used to pay administrative and legal fees.  In a business bankruptcy, the secured creditors are given the collateral for their secured loans – and if it is not enough to repay all their loans then the remaining y are grouped with unsecured creditors.  Bondholders and other creditors are notified of the bankruptcy by the court and usually file a “proof of claim” for money owed to them.

Generally, stockholders are not directly notified of the company’s bankruptcy by the bankruptcy court since they usually do not receive anything in the liquidation of the business.  However, in the unlikely event that there is money left over after full repayment of all creditors that filed “proof of claims” – the stockholders are notified and will also need to file a claim to be paid.

If a business has significant assets – or may be viable with some debt restructuring – then a Chapter 11 Business Bankruptcy may be preferable.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Coleman Legal Group, LLC’s Georgia lawyers practice in the areas of Divorce, Family Law, Estates, Wills, Trusts, Probate, Bankruptcy, Business Law and Immigration. We have offices conveniently located at:

Cumming Georgia
The Avenue Forsyth
410 Peachtree Parkway
Building 400, Suite 4245
Cumming, GA 30041
Phone: 770-408-0477 | Map

Alpharetta Georgia
North Point Park
5755 North Point Parkway
Suite 52
Alpharetta, GA 30022
Phone: 770-408-0477 | Map

Other Offices Throughout the Atlanta Metro Area

Copyright © 2017 | Coleman Legal Group, LLC | All Rights Reserved. Coleman Legal Group, LLC • 5755 North Point Parkway, Suite 52 • Alpharetta, GA 30022 • 770-609-1247 DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

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