Potomac Business Bankruptcy Attorney

Reliable Bankruptcy Lawyer for Business Owners in Potomac, Maryland

All businesses come with their own ordeals and hardships. Sometimes, these hardships are just temporary setbacks that you can endure for a short period. But if you are dealing with significant financial strain caused by debts and other stressors, it may be time to seek outside help. A Potomac, MD business bankruptcy lawyer can help you explore your options to get necessary relief for your company.

At The Law Office of Donald L. Bell, we are familiar with the money struggles often faced by business owners. With over 20 years of legal experience, Attorney Donald Bell can help you work out a customized solution to satisfy your creditors.

What Is Chapter 11 Bankruptcy?

There are different kinds of bankruptcy suited for different financial situations. Chapter 11 bankruptcy is tailored for businesses, as it allows a company to reorganize its existing debts.

Your main objective in Chapter 11 is to restructure your business in such a way that it becomes profitable again. This could involve re-negotiating business contracts, cutting back on expenses, or liquidating assets. To make the required changes, you will first have to draft a reorganization plan that specifies how you will pay back your debts.

The process of filing for Chapter 11 bankruptcy involves collaborating with the bankruptcy trustee appointed by the court while also seeking approval from your creditors. If questions arise about the feasibility of your reorganization plan, your bankruptcy petition could grind to a halt. At The Law Office of Donald L. Bell, we can help you mediate conflicts between you and your creditors, keeping the process moving along smoothly.

Potential Obstacles in Chapter 11 Bankruptcy

During the process of filing for Chapter 11 bankruptcy, you may run into roadblocks as you negotiate your reorganization plan. At The Law Office of Donald L. Bell, we know what to expect when filing a petition for Chapter 11 bankruptcy, and we can help you navigate the challenges of reorganizing your business.

One thing to keep in mind is that the bankruptcy process could threaten the daily operation of your business. You will have to adhere to the terms of your reorganization plan set by your bankruptcy trustee, which may impact how you usually run your business. At The Law Office of Donald L. Bell, we can help you strategize, balancing the requirements of your plan with the needs of your company.

You may also choose to liquidate assets to pay off your creditors. If you decide to move forward with this option, our attorney can provide you with valuable counsel and advice. We can also seek the court's permission to liquidate assets on your behalf.

Am I Eligible for Chapter 5 Bankruptcy?

You may have other options aside from Chapter 11 bankruptcy as a business owner. Chapter 5 bankruptcy is similar to Chapter 11 bankruptcy since they both involve drafting a repayment plan, but Chapter 5 tends to be much faster and easier to resolve. As an added benefit, Chapter 5 bankruptcy also gives you more direct control over your business during your petition, whereas Chapter 11 comes with the risk of surrendering some equity and control to creditors.

However, Chapter 5 bankruptcy may only be available to businesses that meet strict requirements. To qualify, at least 50 percent of your debts must be directly related to the operation of your business, and your business must be engaged in commercial activities. Moreover, your debts must not exceed a certain amount, which is raised every three years to account for inflation.

Meet With a Potomac, MD Business Bankruptcy Lawyer

Are you struggling to pay off business-related debt? If so, The Law Office of Donald L. Bell is here to help. Our Potomac business bankruptcy attorney can assist you in filing a petition for Chapter 11 or Chapter 5 bankruptcy. Call us at 301-614-0535 or contact us online to arrange a consultation today.