Bankruptcy is generally viewed as a last-resort measure for Florida businesses and individuals. You’ve tried everything to repay your debts, but it’s become unmistakably clear that fulfilling those financial obligations is neither reasonable nor feasible for you to move forward.
As a Florida business owner, it’s understandable to fear that all your hard work might soon be gone as you’re left with nothing to show for it. Even as you go through the process, not all of your debts will be forgiven. However, it’s crucial to remember that life after bankruptcy isn’t always what common misconceptions claim it to be. Understanding that a business can indeed survive—and even thrive—after bankruptcy is vital.
Chapter 7 Corporate Bankruptcy
While Florida bankruptcy court can open the door to new beginnings for many businesses, Chapter 7 filings will ultimately mark the end of the road. In these cases, a business finds itself deep in debt, and the main purpose of the filing is to liquidate assets in order to pay off as much debt as possible before moving forward. The process is overseen by a trustee, who manages the liquidation, and a “stalking horse” is appointed to set a minimum value for the assets, encouraging others to bid at or above this price.
These appointments ensure that assets are sold at fair prices, helping to maximize the repayment to creditors. This includes settling debts with investors who have agreements with the company. After the conclusion of a Chapter 7 bankruptcy, the business officially dissolves, yet this does not prevent the possibility of you and your partners starting anew with a different business venture in the future.
Chapter 11 Corporate Bankruptcy
Chapter 11 bankruptcy, as opposed to Chapter 7, provides a beacon of hope for Florida business owners wishing to continue their enterprise after filing for bankruptcy. This filing allows a business to remain operational while devising and implementing a plan to reorganize its debt. Unlike in Chapter 7, you maintain control over your assets, working in concert with a committee assigned to oversee the process and protect the interests of all stakeholders involved.
This collaboration provides a valuable opportunity to reshape your business’s future, ensuring its continuity and your legacy. However, it’s crucial to understand that if the reorganization plan is deemed unfeasible or fails, the company’s assets will still be subject to liquidation by a trustee. Through Chapter 11, Florida businesses have a fighting chance to turn their fortunes around, offering a pathway to recovery and sustainable growth.
Find a Florida Bankruptcy Attorney Today
At The Law Office of Ray Garcia, P.A., we are proud to represent the people of Florida. We support their vision for a more prosperous future, but we also understand that life doesn’t always go according to plan. Bankruptcy might not always be the best option for you or your business, but bankruptcy also doesn’t have to be an end. Contact our team if you’re ready to go into the bankruptcy process with confidence that there are better days ahead.
Law Office of Ray Garcia, P.A.
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