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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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small s corp has 1 large debt that wont allow us to get on

This answer was rated:

small s corp has 1 large debt that won't allow us to get on our feet, will a chapter 11 help us and how

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

A chapter 7 would discharge the debt in full,

WALLSTREETESQ :

a chapter 11 is a reorganization of debt, and may not help you much,

WALLSTREETESQ :

A chapter 7 would wipe out the entire debt, and allow you to create a new corp and run the business

Customer:

We are a small business s corp we bought a franchise the person we bought it from is threatening to sue us because we are behind in payments. We have started to make money but we need more time so we can catch up. Is there anything we can do about this.

WALLSTREETESQ :

If you do not want to dissolve the corp, and want to continue operating, a chapter 11 reorganization may help with the debt,

Customer:

What is our next step

WALLSTREETESQ :

The problem is the lender would have to agree to any payment plan, and could take the franchise away from you,

WALLSTREETESQ :

If a chapter 11 is what you want to do, consider hiring a local bankruptcy attorney who can handle such matters, as a chapter 11 is complicated, you can wait until the creditor takes legal action, to file, as the bankruptcy would stop all actions

Customer:

Thank you we will contact a local attorney

WALLSTREETESQ :

Good luck, a chapter 11 allows you to continue operating the business,

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you