Dayton Business Bankruptcy Lawyer
Owners of small businesses in states across the country are concerned about current economic conditions. And Ohio is no exception. The American dream of entrepreneurship seems to be in a state of precarious jeopardy. Every day, independent shop owners and large corporations must make survival mode decisions. For companies and families alike, the usual measures of simply cutting back, tightening our belt−straps, and other such euphemisms for making a little money go a long way, is no longer enough. Still, Americans are a resilient people, and for most, simply giving up is not a consideration. Fortunately, other options are available. Speaking with a qualified Dayton commercial bankruptcy attorney at Fox & Associates Co., L.P.A. is a smart place to start.
Dayton, Ohio’s small business bankruptcy options
Insolvency issues can arise from any number of causes, including:
- Inadequate record keeping
- Competition from larger companies
- Changes in technology
- Problems collecting monies from customers
These issues, among others, can seriously threaten the stability of a business. Financial reorganization in the form of business bankruptcy may be the best way to address your company’s economic challenges. The concept behind such a decision rests on the notion that it is better for everyone involved if you can continue operating, rather than liquidating, your business. A knowledgeable Dayton business bankruptcy lawyer can best advise you about which of the following options may lessen your financial woes:
- Chapter 11 bankruptcy allows your business to keep running. Debt is restructured and operations are reorganized in order to ultimately pay off the majority of debt through a repayment plan supervised by the court. This option is best used if the company is expected to recover financially. Advantages include the facts that your business can keep its assets, and many workers can remain employed.
- Chapter 7 bankruptcy may be the best option for a business that is in a crisis and not likely to recover despite restructuring. This approach allows for the discharge of most of your outstanding obligations to creditors, and a complete dissolution of your business.
- Conversion is another alternative offered in Ohio. A hybrid of the two options described above, a Chapter 11 case is initiated. Over time, however, if it becomes clear that the business cannot recover, then a motion is filed to convert the case into a Chapter 7 bankruptcy, allowing your company’s debts to be cancelled.
Looking ahead – seeking early bankruptcy planning
With the recession still a serious concern, many small business owners are wise to plan ahead. Talking to a skilled bankruptcy lawyer in Dayton early is a good idea if you suspect that your business is in trouble. It is important to note that during the year before you file, you cannot transfer ownership of any of your business equipment or assets to someone else, and during the three months prior to filing, you cannot make payments to any of your creditors. A knowledgeable business bankruptcy attorney can inform you of any additional changes in Ohio’s current bankruptcy laws that could affect the future of your business.
Find a Dayton commercial bankruptcy law firm that can focus on your unique financial needs
Fox & Associates Co., L.P.A. knows the current bankruptcy laws in Ohio and can provide you with the expertise and personal attention your specific financial situation deserves. Contact us today by phone at 937-258-3668 or online to set up your initial consultation.