Chapter 7 Bankruptcy for Businesses

Just like consumers, businesses may face financial problems during difficult periods. And like consumers, businesses have the option of declaring bankruptcy in order to get their debts settled. One such option is Chapter 7 bankruptcy for businesses. Under Chapter 7 bankruptcy, a business owner will liquidate property in order to repay creditors.

If your business is struggling under mounting debts, contact the Arizona business bankruptcy lawyers of the Harmon Law Office, LLC, today at 480-829-0494 for a free consultation.

Understanding Chapter 7 Bankruptcy for Businesses

When a company declares Chapter 7 bankruptcy, it must liquidate its assets to pay off its debts. In many cases, this means selling:

• Departments or divisions of the company
• Expensive equipment needed for business
• Other assets that the company owns

Usually, all of the company’s assets will be sold to third parties to pay off the company’s debts. There are some cases, however, in which a business can remain intact. The court-appointed trustee will oversee this process of asset liquidation and the repayment of debts that follows.

Once creditors have been paid, the corporation that owned the business is typically dissolved, meaning that the corporation no longer has any stake in that business.

Contact Us

When your business faces mounting debts and no method for financial recovery, Chapter 7 bankruptcy may be the right option. Contact the Arizona business bankruptcy attorneys of the Harmon Law Office, LLC, at 480-829-0494 today to discuss your situation with an experienced bankruptcy lawyer.