Business Bankruptcy FAQ
Bankruptcy FAQs and Information: Law Firm in Indianapolis
Make Informed Decisions About Business Debt Relief Options
Redman Ludwig, P.C., is a Central Indiana bankruptcy law firm that has worked with businesses and individuals in financial crisis for three decades. Our experienced and sophisticated bankruptcy attorneys have the necessary business knowledge to advise and represent business owners looking for a way to continue operating or put into effect an orderly shut-down of business operations.
Redman Ludwig, P.C., offers the following bankruptcy FAQs and information in the hopes that Indianapolis business owners will find answers to some of their most pressing bankruptcy questions. We also urge you to contact our bankruptcy law firm to discuss possible solutions based on your unique business needs, after reviewing the following general bankruptcy FAQs and information.
Can Filing Chapter 7 Help Me Close My Business?
Yes. If you decide to close your business and cannot pay all your outstanding debts, Chapter 7 is one way to advise creditors of your financial circumstances to avoid defending lawsuits and other harassment and protect your personal assets if possible.
How Does Chapter 11 Work for a Business?
Like a Chapter 13 bankruptcy for individuals, a business owner in Chapter 11 submits a debt reorganization plan showing how the business can become profitable within three to five years. The plan further shows how the business owner will pay back secured and some portion of unsecured debts out of the business profits. Debts that can be reorganized under Chapter 11 include back taxes, debts from trade creditors, business credit card debt, mortgage payments and other loans.
A business owner in Chapter 11 runs his or her business without financial crisis fires burning at their feet 24 hours daily. Chapter 11 allows the business owner to focus on creating profit instead of putting off creditors.
What Does 'Cram Down' Mean in a Chapter 11 Bankruptcy Filing?
Perhaps you borrowed $100,000 to buy restaurant equipment that is now worth $10,000. As part of the Chapter 11 bankruptcy process, you can scale down — or "cram down" — all secured debt to the actual value of the assets instead of the value of the original loan. Any debt amount above the actual value of the assets becomes unsecured and is paid back over time based on what you can generate via business profits.
What if I'm Behind in Monthly Business Lease Payments?
You may be able to use Chapter 11 bankruptcy to renegotiate or cancel a lease that is overly burdensome, especially if you can show that the burdensome lease is negatively affecting your profits.
How Much Will Business Bankruptcy Cost?
All bankruptcy attorneys' fees must be approved by the bankruptcy court. It is impossible to estimate exact fees because every client's case is different. We can say, however, that your bankruptcy case does not have to cost tens of thousands of dollars. If you've consulted other bankruptcy lawyers, you have heard exorbitant fee estimates. Because we are a small and efficient law office, we can keep our fees affordable for small and medium-sized businesses.
Central Indiana Business Bankruptcy Solutions
If the bankruptcy FAQs and information on this page does not answer all your questions, or if you would like advice tailored to your specific situation, we urge you to contact us at Redman Ludwig, P.C., for a consultation. Call our Indianapolis law offices directly at 317-800-6181, toll free at 866-660-6928, or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.
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