Hagerstown, MD Business Bankruptcy Lawyer

Dependable Bankruptcy Attorney for Business Owners in Hagerstown

Handling the daily operations of a business is a full-time job in itself. In the process of keeping your business running, you may have to take on certain expenses. Some of these expenses may be small recurring payments, while others represent long-term investments that you must gradually repay. When these obligations start to add up, your debts may become unmanageable, potentially jeopardizing the future of your business. Should this come to pass, a Hagerstown business bankruptcy lawyer can help you work toward a solution.

At The Law Office of Donald L. Bell, we have the resources, skills, and legal experience to help you get through your business bankruptcy case. Attorney Donald Bell has helped numerous clients over the years with bankruptcy concerns, providing individualized counsel and advocacy to assist people in dire circumstances. When you work with our firm, we will treat your business bankruptcy case with the attention and care that it deserves.

Getting an Automatic Stay Against Creditors in Business Bankruptcy Cases

When you fall behind on payments for your debts, you may be approached by creditors looking to seize your assets or property. On top of your duties to your clients and your employees, this may be another source of unnecessary stress. Fortunately, by filing for bankruptcy, you can protect yourself from harassment by your creditors.

When you file your petition for bankruptcy with the courts, a court order will be issued against all of your creditors, preventing them from contacting you about your late payments or threatening to repossess your property. Keep in mind that the automatic stay only provides temporary relief while your bankruptcy case is ongoing. To protect your business in the long term, you will have to draft a reorganization plan to restructure your debts.

What Does a Reorganization Plan Have to Include?

A reorganization plan is a legal document that shows your creditors how you will pay back your debts and maintain profitability. This will require you to look at how your business is functioning and identify possible ways to reduce operational costs. At The Law Office of Donald L. Bell, we can review your business to look for ways to free up your budget, such as renegotiating existing contracts or restructuring your business.

When you file for Chapter 11 bankruptcy, you will have to present your reorganization plan to your creditors, who can object to the plan if it does not adequately address their concerns. Smaller businesses may qualify for Chapter 5 bankruptcy, which involves much less oversight from outside parties. Whichever kind of bankruptcy you file for, our attorney can work with you to draft a sound reorganization.

Types of Business-Related Debts

In order to qualify for Chapter 5 bankruptcy, at least 50 percent of your debts must be related to the operation of the business. Some of these debts may include:

• Lines of credit with vendors
• Commercial real estate loans
• Loans for specialized equipment
• Loans for company vehicles
• Credit card debts for business expenditures
• Loans to cover cash flow gaps

Not all debts are bad for a company. Sometimes, taking on debts can be a necessary stepping stone for the expansion of your business. When your debts begin to grow beyond what you can manage, it may be time to consider seeking legal representation from a bankruptcy firm.

Meet With a Hagerstown, Maryland Business Bankruptcy Attorney

Do you need help reorienting your business in response to pressure from creditors? If so, consider working with The Law Office of Donald L. Bell. Our firm can assist you in returning to profitability while developing a strategy to address your outstanding debts. To schedule an initial consultation with our Hagerstown business bankruptcy lawyer, call us at 301-614-0535 or contact us online.