Resolving Business Financial Difficulties Through Bankruptcy

When your business falls on hard times, come to our firm to reorganize! You do not have to close the doors. Business owners have a number of options available that can allow them to continue operating. Depending on your situation, filing for bankruptcy could provide the debt relief you need to get back on the right financial path.

If you have questions about how to resolve your company’s financial difficulties, be sure that you have a reliable Tampa business bankruptcy lawyer behind you. At Ford & Semach, P.A., we dedicate our entire practice to bankruptcy law. Attorney Ford is board-certified as a specialist in business bankruptcy by the American Board of Certification. We have represented businesses ranging from sole proprietorships to publicly traded companies.

Our Business Bankruptcy Services

Chapter 7: If your business is such that a liquidation and subsequent discharge of your debts would be most advantageous, we can walk you through the entire process and work to ensure that your interests are protected at all times.

Chapter 11: Mr. Ford has been appointed as a Chapter 11 trustee and has a complete understanding of these cases from both sides. We will explain the ramifications of filing Chapter 11, including specialized strategies for commercial loan restructuring, and give you an honest assessment regarding the viability of Chapter 11 for your situation. and give you an honest assessment regarding the viability of Chapter 11 for your situation.

Frequently Asked Questions

If you’re considering bankruptcy and have some pressing questions about the process, our experienced team would be happy to offer answers:

Can my business continue operating during bankruptcy proceedings?

Yes. Operations often cease if you file for Chapter 7 bankruptcy because you have to liquidate nonexempt assets. But if you use other types, such as Chapter 11, your business can likely continue operations while reorganizing your debts. The goal is to make the debt affordable based on your business’s income and create a repayment plan.

What assets are protected during business bankruptcy?

You only have to liquidate nonexempt assets, so it’s important to understand the different exemptions you may want to use. In some cases, for instance, your inventory or tools of the trade can be exempt. You may also be able to use exemptions for vehicles, personal property, retirement funds and more. Additionally, some types of bankruptcy create a repayment plan and do not require you to liquidate any of your business assets.

How does bankruptcy affect my business credit?

Bankruptcy will initially have a negative impact on your credit score. But it is possible to rebuild the score over time. Reorganizing your debt and then making on-time payments moving forward – perhaps by using a secured line of credit – can help you do so.

What alternatives to bankruptcy exist for small businesses?

At our firm, we focus on a variety of options and alternatives for debt relief, which can give you some options beyond traditional bankruptcy services. Some alternatives include:

• Subchapter V: A more streamlined bankruptcy often used for businesses that owe less than $7.5 million.
• BAPCPA: The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
• Informal debt restructuring: Some creditors may be open to restructuring outside of bankruptcy to find a solution that works for both sides. It can help to negotiate directly with creditors.
• Assignment for the benefit of creditors: This is an alternative to bankruptcy where your company transfers assets to a third party, and those assets are then liquidated to pay creditors.

Our team can help you thoroughly explore all of your options.

How can Chapter 12 Bankruptcy help your business?

Chapter 12 bankruptcy can be used with specific types of farms and agricultural businesses, such as tree farms or nurseries. It is important to note that it does not apply to maritime businesses or commercial fishing businesses.

Chapter 12 is useful because it creates a repayment plan. This allows the farm to continue operation and pay the debt down over time through a reorganization of that debt. This is very helpful for businesses that have a stable income but simply have too much debt to address all at once. Since farm owners do not lose crucial assets, like financed farm equipment, they can continue to earn.

The Goal Of Reorganization And Restructuring

With restructuring and reorganization of debt, whether through bankruptcy or an alternative—such as informal debt restructuring—the end goal is to keep the business in operation and earning money. This is why it is more effective than something like Chapter 7 for businesses, which requires the liquidation of non-exempt assets. A repayment plan can fit into a profitable business’s budget, creating a path to financial recovery.

How do you know if bankruptcy is the right option for your business?

Bankruptcy can be helpful when facing overwhelming debt that is creating financial strain, but other efforts at negotiation have not worked. Many business owners are worried that their company is going to have to shut down operations and close, but bankruptcy—such as Chapter 11 for businesses—can help them stay open. 

Can bankruptcy eliminate 100% of your business’s debts?

Not necessarily. Some debts are ineligible for bankruptcy, such as taxes or some secured debts. However, using bankruptcy to eliminate or consolidate some debts can make other obligations, like back tax payments, affordable again. 

How does bankruptcy help your business recover financially?

By showing you tactics for discharging debts or reorganizing debt into an affordable repayment plan, a Tampa business bankruptcy lawyer can help you create a positive financial future. Clearing debt can often make the business stable and profitable. Your reorganization plan when using Chapter 12 for businesses debt management, for instance, will be based on your income. 

Call For A Consultation

Contact our office today to learn more about our business bankruptcy services and how we can help you. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at 813-302-1258 or via email.

We are a debt relief agency. We help businesses and individuals file for debt relief under the Bankruptcy Code.