The national trends for bankruptcy filings are good, in that the total number of individuals and businesses filing for either Chapter 7 or Chapter 11 nationwide are down. However, a qualified Brooklyn Chapter 11 bankruptcy attorney encounters plenty of companies and families who are still suffering from the effects of the recession and Hurricane Sandy.
What’s important is that the rules and provisions of federal and state bankruptcy statutes provide benefits. Chapter 7 filings allow a comprehensive dissolution of debts, but require liquidation of assets as well. Alternatively, individuals whose income can ultimately cover their obligations but with smaller monthly payments, the engagement of a Bronx Chapter 11 lawyer can help them do just that. Chapter 11 bankruptcies provide a means for individuals and small businesses to continue operating in several ways:
- Creditors are prohibited from hassling you for payments, but are instead required to work out payment plans that are affordable for the filer.
- Assets are kept intact, allowing businesses to maintain operations. Similarly, individuals do not need to liquidate assets if they can reduce net expenditures.
- If the bankruptcy court allows, investments in a business are still possible under Chapter 11.
Given the state of the economy over the past several years, filing for Chapter 11 has become a common option. There was a 22 percent drop in commercial bankruptcies in 2012 over 2011, but last year there were still 1.1 million individuals and 57,788 businesses that filed for either Chapter 11 or Chapter 7, according to the National Association of Credit Management.
Work with attorneys who can identify the best approaches to financial distress. The Law Office of Gregory Messer in Brooklyn works with businesses and individuals throughout New York City and on Long Island.