It can be difficult for a business owner to admit that the company is financially troubled, and deciding to file for bankruptcy can be even harder. There are multiple factors to consider including eligibility for Chapter 7 or Chapter 13, filing the petition, listing creditors and more. Below are some of the key considerations for the declaration of Business Bankruptcy Topeka KS.
Admit There’s a Problem
The bankruptcy process starts by admitting that the company is in trouble. The sooner the problem is addressed, the easier the solution will be. Creditors should be kept apprised of the situation, and business owners who are upfront will find creditors easier to work with.
Consult an Attorney
Above all else, the business owner should consult an attorney if they are considering filing for bankruptcy. One should expect to spend a substantial amount of energy and time helping the attorney complete the company’s schedules and petition, and on representing the company throughout the proceedings. Business owners can lower their legal expenses significantly by doing a portion of the legwork themselves.
Have Realistic Expectations and Be Honest
Bankruptcy is not a cure-all, and business owners should not expect it to cure all of a company’s financial woes. Owners should not forget to list creditors on the bankruptcy schedule. Whether the omission is intentional or inadvertent, debts to unlisted creditors are not discharged during bankruptcy.
Filers should not transfer or sell assets to relatives or friends to conceal them from the court or creditors. The court-appointed trustee will inquire about transfers at the initial creditors’ meeting, and they have the legal authority to recover such assets.
Above all else, filers should not attempt to defraud the court. Bankruptcy schedules are signed under the penalty of perjury, and the business owner is placed under oath at the creditors’ meeting. If a filer cheats or lies during testimony, the court will find out and the case will be dismissed. In some instances, filers may face prosecution for fraud.
Hire an Attorney During Bankruptcy
Whether one is contemplating filing for bankruptcy or they are already in process, they should Contact Us for Free Consultation. A local bankruptcy attorney is there to answer questions and to help the business owner understand what Business Bankruptcy Topeka KS will do for the company.