Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
I need more information from you:
1) Are you asking about filing a personal or a business Bankruptcy?
2) About how much do you think the business could sell for - both before and after it is closed?
I want to file business bankruptcy. I think the business can sell for 320,000 before it is closed. I can still keep it going for a while, but I am barely having enough to pay for the accounts, and the attorney for our former employee wants to sue us a big amount of money for OT pay. His attorney fee is going to be much more than the damage they claim. I have no way to pay for the legal fees, so i want to know if filing for bankruptcy can help us avoid the wage claim and attorney fees.
If you file a Chapter 7 business Bankruptcy, that means the business will be "liquidated", which means all the business assets will be sold to pay creditors.
If after selling all the assets, there is not enough money to pay the creditors in full, and if the business can still be sold after all the assets are gone, the Bankrutpcy court will sell the business and give that money to your creditors. If there is any money left over after selling the business and paying your creditors, you will get the money that is left over.
If after selling all the assets, there is enough money to pay your creditors in full, you will be able to do whatever you want with the business, including selling it.
I think this is what you wanted to know. If not, please let me know.Thank you.