Ellicott City, MD Business Bankruptcy Attorney

Hands-On Lawyers Helping Entrepreneurs Choose the Right Type of Bankruptcy in Ellicott City, Maryland

Starting your own business is always a risk. Even if you had an excellent idea for a company and are one of the best in your industry, there is never a guarantee that a new business will succeed. A business might see initial success only to begin struggling during an economic downturn.

Nearly all businesses have some debt. You likely needed loans for startup expenses, such as finding a location for your business and buying the necessary equipment. These loans can take many years for a business to pay off, even if things are going very well. If the debts your business owes are becoming unmanageable, it may be time to consider filing for bankruptcy. You have several options for how to approach a business bankruptcy. Which choice is right for you will depend on factors like whether you want to keep your business open and the size of your company.

The Law Offices of Marc A. Ominsky, LLC is experienced in working with business owners who are facing bankruptcy. Our dedicated Ellicott City, MD business bankruptcy lawyers will carefully manage every aspect of your case. We are hands-on in our practice, and we can help you in real time when you reach out to us. With more than 50 years of combined legal experience, we are highly knowledgeable about the issues a business can face during bankruptcy and how to overcome them. We will strive to make the bankruptcy process as easy as possible for you.

Chapter 13 Bankruptcy for Businesses

If your goal is to save your business, and you are a sole proprietor or independent contractor, Chapter 13 bankruptcy may be your best option. If you file under Chapter 13, your business's debts will be consolidated. For the next three to five years, you will pay a portion of your profits each month to the bankruptcy trustee, who will distribute the payments to your creditors. After you finish the repayment term, the remaining debts may be cleared. Your business can keep its assets, and no need to interrupt your business's operations.

However, it can be difficult to qualify for a Chapter 13 business bankruptcy. You will need to be able to show that you can keep up with the demands of a Chapter 13 repayment plan. If your business has seen a substantial drop in profits recently or is close to failing, Chapter 13 may not be an option.

Chapter 7 Business Bankruptcy

If you plan to close down your business, Chapter 7 bankruptcy may be the right choice for you. Your company's assets will be liquidated to pay back your creditors in part, and any remaining debt will be cleared once the bankruptcy process is complete. If you are ready to dissolve your business and move on to your next venture, Chapter 7 bankruptcy can help. Most small businesses can resolve a Chapter 7 bankruptcy in a matter of months, freeing you to pursue other career opportunities.

When to Choose Chapter 11 Bankruptcy

Chapter 11 bankruptcy may be your best option if you want to keep your business open. It is similar to Chapter 13 bankruptcy in that your business's debts will be reorganized, and you will need to continue making monthly payments. Your attorney can help you create a realistic and manageable reorganization and repayment plan to present to your creditors, and we can help negotiate changes if needed. While you may have some flexibility when creating a Chapter 11 reorganization plan, the procedures you will need to follow can be complicated. You will be required to provide detailed and clear financial records and carefully manage your business assets during the entire process.

If you have a small business, you may qualify for a simplified form of Chapter 11 bankruptcy. Larger businesses will go through more formal proceedings that include working with a committee of creditors to establish a repayment plan.

Contact Our Ellicott City, MD Business Bankruptcy Lawyers

The Law Offices of Marc A. Ominsky, LLC is dedicated to helping business owners determine their best options for filing for bankruptcy and resolving issues related to business debts. Our highly experienced Ellicott City business bankruptcy attorneys will guide you throughout the entire process. Contact us at 443-539-8712 for a complimentary consultation.