Birmingham Chapter 7 Bankruptcy Lawyers
Corporations, like small businesses and individuals, may file for Chapter 7 bankruptcy. Chapter 7 corporate bankruptcy, however, has many differences from those filed by other parties. It is a court-sanctioned and supervised procedure where a trustee will take over the corporation's finances and debts. A petitioner does not receive a discharge of its debts — these debts technically survive the business — and the trustee will sell the corporation's assets to distribute proceeds to the creditors.
At the Birmingham law firm of Gina H. McDonald & Associates, our bankruptcy lawyers can provide experienced representation for corporations entering Chapter 7 bankruptcy. A business may wish to petition for Chapter 7 bankruptcy when the debts in that business are overwhelming, and it is not feasible to reorganize the business.
Alabama Corporation Attorneys
There are many benefits to filing for Chapter 7 bankruptcy. It is an economical way to dissolve a business due to the low cost involved, to limit allegations of acting improperly and to discourage creditors from seizing assets. Once a petition is filed, the trustee will manage dissolution of the business, including the sale of assets and the distribution of funds to creditors.
An automatic stay will be put in place while the bankruptcy is pending to stop creditors from pursuing collection and allowing corporate officers to seek other employment.
Corporations and Bankruptcy in Alabama
Schedule an appointment and talk with one of our experienced attorneys about corporations and bankruptcy in Alabama. We have offices in Birmingham and Oneonta. Contact our firm by e-mail or by calling us toll free at 888-412-9047.