Business Bankruptcy Michigan

Business bankruptcy is certainly not a fun ride for a corporation to take. There are different forms of bankruptcy, some worse than others, some that will completely ban a company from conducting any more business.

Local Companies

Holmes Law Offices
231-744-9439
318 Center Street
Muskegon, MI
Law Office of Laura L. Shirah
(810) 874-6654
4511 Miller Rd., Suite 5
Flint, MI
Law Office of Laura L. Shirah
(810) 874-6654
4511 Miller Rd., Suite 5
Flint, MI
CCM Bankruptcy Preparers
517.851.4686
17755 Dutton Road
Gregory, MI
Haystead Ronald M
(734) 283-5100
3035 Biddle St
Wyandotte, MI
West Michigan Bankruptcy Clinic PC
(616) 392-8528
Muskegon, MI
Hendrian William V
(231) 941-8833
Cedar, MI
Acclaim Legal Services
(248) 552-5097
17117 W 9 Mile Rd
Southfield, MI
Paul Bare Attorney
(231) 271-6617
9995 E Duck Lake Rd
Suttons Bay, MI
Moore & Hicks PC
(810) 232-2223
412 S Saginaw St
Flint, MI

Business bankruptcy is certainly not a fun ride for a corporation to take. There are different forms of bankruptcy, some worse than others, some that will completely ban a company from conducting any more business. To avoid this costly and unfortunate event, businesses with negative cash flow should consider seeking advice from certified financial experts who have some experience with bankruptcy. Let's take a look at how bankruptcy works.

How Business Bankruptcy Works

Business bankruptcy is a state in which corporation or small business cannot pay back debts or does not have faith in its ability to pay back its debts. Creditors, such as banks and lending institutions, are the ones who loaned the money out to business in the first place. A company can file for two types of bankruptcy: Chapter 11 and Chapter 7. These two states are vastly different.

Under Chapter 11, the Justice Department's US Trustee will appoint a committee or committees to help the struggling business reorganize and get itself out of debt. The goal here is to turn operations to make the company more profitable and generate more and more cash flow. The committee forms a plan of action, which the creditors, note holders, court and stock holders must accept and confirm.

Chapter 7 is a more severe form of business bankruptcy that results in the liquidation of a company, meaning the company will no longer have the chance to stay in business. The creditors whose loans are secure will receive collateral in compensation for this unfortunate event. The dismantled company's assets will be sold off by a trustee.

Featured Local Company

Holmes Law Offices

231-744-9439
318 Center Street
Muskegon, MI

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Related Local Event
16th Annual Central States Bankruptcy Workshop
Dates: 6/11/2009 - 6/13/2009
Location: Grand Traverse County Civic Center - Traverse City
Traverse City, MI
View Details

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