Chapter 11 Bankruptcy Lawyers Helping Businesses and Individuals Reorganize Their Debts in Astoria, NY
In the state of New York and all across the country, businesses have fallen on hard times. While the economy is showing signs that it may be struggling to come back to life, some of that may be too late for some businesses, big and small, that have taken a hit during the COVID-19 pandemic. While some of these businesses shutter their doors and windows, there are others that may have legal and financial options available to them. One such option is filing for Chapter 11 bankruptcy.
Chapter 11 is known as the ‘reorganization bankruptcy’ as it allows you to restructure your debts in a way that is satisfactory to your creditors and slowly pay back monies owed over a period of years. During this time, your company is allowed to stay open for business so that you may still turn a profit under this newly reorganized structure and satisfy your creditors, your shareholders, your employees, and your consumers.
If you would like to learn more about the benefits and complexities involved in filing for Chapter 11 bankruptcy, please contact the NYC law offices of Ortiz & Ortiz, LLP. The attorneys of our law firm have decades of experience providing legal and financial advice to clients in and around Astoria, NY.
Bankruptcy can be complicated and should not be pursued without being well-informed of all relevant details. Please reach out to our lawyers and associates for a consultation, so that we may assist you in this difficult process.
What is the Difference Between Chapter 7 and Chapter 11 Bankruptcy Code and Which is Right for You?
People tend to think of filing for bankruptcy as waving a white flag and giving up. This is not so. While all types of bankruptcy may be rightly considered an option of last resort, there are some forms of bankruptcy that are more for restructuring debts with an eye to resuming business.
Chapter 11 is for those looking to settle their financial issues, resolve debts, and find a way to come out on top again. While those that file for Chapter 11 may very well likely have to scale back operations for a time, their ultimate goal is to build back better once their debt is paid off.
Chapter 7 bankruptcy is a liquidation bankruptcy, though. If you pursue Chapter 7, your business is not coming back, at least not in the short term and with the same assets and build. With Chapter 7, your assets are liquidated in order to pay off creditors. This form of bankruptcy does not allow for businesses to remain operational for long.
Can a Business Survive Bankruptcy?
Yes, absolutely. However, if it is to survive for long, then changes are usually in order. For example, if poor management and bad financial decisions led to financial hardships but those who committed those errors did not learn from their mistakes (or were not replaced), then you might very well end up back where you started.
But with new (or newly focused) management, a continued cash flow supplied by remaining open for business, debtor-in-possession (DIP) financing plans, and strict structures that appease both creditors and stakeholders alike, it is possible to rebuild better than before.
If you’d like to learn more about what comes after filing for Chapter 11, please contact our Astoria, NY bankruptcy lawyers.
Have Bankruptcy Laws Changed as a Result of the Pandemic?
In 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act to benefit those struggling with the negative economic impact of the COVID-19 pandemic. While most households received a check, the stimulus package’s real purpose was the billions of dollars meant for helping small businesses across the country.
The CARES Act makes it easier for small businesses to file for Chapter 11 bankruptcy and raises the Chapter 11 Subchapter 5 debt limit to $7,500,000. It also streamlines certain other parts of the bankruptcy process.
Our nation’s laws are changing all of the time and state laws are no different. To ensure that you are operating off of the correct information, it is important to speak with an attorney who is well-versed in federal and state laws in the practice areas you are concerned with. At Ortiz & Ortiz, LLP, our attorneys have years of experience helping clients both in matters of federal law and New York’s state laws. Please contact our law offices to schedule a case evaluation.
Contact the Law Firm of Ortiz & Ortiz to Speak with a Bankruptcy Attorney About Your Case
If you have any questions or concerns about bankruptcy and the negative impact it could potentially have on your business or finances, please reach out to the lawyers of the Ortiz & Ortiz law firm in Astoria, NY. Bankruptcy is a complicated process and should not be entered into without all due diligence and full considerations for the pros and cons therein. While every bankruptcy case is unique, our law team has the experience to assist you through this process and help you and your business towards a satisfactory outcome.
Ortiz & Ortiz, LLP serves clients in Astoria and the five boroughs of NYC. Our clients include large corporations, small businesses, and individuals with intensely personal concerns. All prospective clients that pass through our doors are treated with respect and dignity and will receive compassionate, dedicated legal representation.
To schedule a consultation with our lawyers, please contact us by email, through our website’s contact form, or by calling 916-796-1858 today!