The attorneys at the law firm of Collins, Webster & Rouse, P.C. help businesses, including farmers, find relief from debt through business bankruptcy services. Bankruptcy eliminates debt through tools such as repayment, liquidation of assets, and payment plans. The two key bankruptcy procedures for businesses are Chapter 7 debt elimination and Chapter 11 debt reorganization. Chapter 12 is a special procedure specifically designed for farmers. Regardless of the cause of your mounting debt, our Joplin bankruptcy lawyers can help your company understand and utilize its options.
What Chapter 7 bankruptcy can do for your company
In Chapter 7 bankruptcy, your company’s debts could be completely eliminated while you may be able to keep some of the business’s assets. One benefit of filing for bankruptcy is stopping the harassment from creditors. While a Chapter 7 bankruptcy proceeding is going on, creditors are prohibited from calling you on the phone or taking other actions to collect payment.
When Chapter 7 bankruptcy litigation ends, all creditors whose debts were discharged are prohibited from ever collecting on those debts. For example, after a successful Chapter 7 business bankruptcy in Joplin, a supplier may be prohibited from ever trying to collect the debt you owed for the parts they previously supplied. At the same time, any of your company’s assets that were deemed exempt would still belong to the company.
Chapter 11 offers a different option
Think of Chapter 11 bankruptcy as reorganization of your business. If your company is no longer operating profitably, and the debts to other businesses are mounting up, your company can initiate a Chapter 11 business bankruptcy, or your company’s creditors may initiate the proceeding. During Chapter 11 proceedings, our attorneys and your creditors will participate in negotiations to make debts more manageable and to develop a reorganization plan. We work to educate you and dispel bankruptcy myths.
Chapter 12 bankruptcy for family farms
Chapter 12 bankruptcy is tailored to family farmers. Either an individual family farmer or a family farming corporation can use Chapter 12. To file, you must have regular annual income and your debt must fall below a certain limit. Requirements for this form of bankruptcy differ from the other types. Factors that will be considered include:
- The amount of your debt
- The amount of income your farm generates
- The level of involvement your family has in the business
The result of a Chapter 12 business bankruptcy is that you carry out a plan to pay all or part of your debt or your company’s debts. The repayment plan may consist of installment payments made to creditors over three to five years. Our Missouri bankruptcy attorneys can help you determine whether Chapter 7, Chapter 11 or Chapter 13 is right for you or your company.
Contact an experienced Joplin business bankruptcy attorney
If your business or farm is struggling with unmanageable debt, we can help you to eliminate that debt or get you on track with a reasonable repayment plan. Collins, Webster & Rouse, P.C. helps Missouri businesses overcome their financial challenges. To discuss your options under Missouri bankruptcy law, call us for a free consultation at 417.782.2222 or contact us online.