770-609-1247 | Georgia Chapter 7 Business Bankruptcy Attorneys
Business Bankruptcy – Chapter 7
Georgia Business Chapter 7 Bankruptcy Lawyers
In a business Chapter 7 bankruptcy case, the enterprise is liquidated (all the assets are sold) for the benefit of creditors. Businesses are “liquidated” in a Chapter 7 bankruptcy case and do not receive a discharge. For a business to file bankruptcy, it has to be officially organized as a Corporation, Limited Liability Company, or some other type of recognized form of organized business. Sole proprietors should consider filing a personal bankruptcy case if needed because they are not formally organized. Chapter 7, Chapter 13 and in some instances a Chapter 11 can be filed by a person that has an enterprise and debts, but does not own a LLC, Corporation, etc.
Chapter 7 business bankruptcy are usually most suitable for small organized businesses with few assets and little possibility of overcoming a debt situation in a reasonable amount of time or at all.
Starting a New Business After Bankruptcy
However, and fortunately, the owner’s of a business going through a Chapter 7 can usually start a new enterprise with little or no delay or impediments. So if a person owns a business going through a Chapter 7, that person can usually start a new corporation, LLC or other form of business at anytime. “At anytime” includes before, during and after the filing of the person’s other business’ filing of a Chapter 7 bankruptcy. So filing a Chapter 7 for a failed venture should not dissuade an entrepreneur from starting a new enterprise. As history has shown (including recent history), some of the greatest entrepreneurial minds and personalities in the world has businesses that failed and filed bankruptcy before going on to great success. This list includes, but is far from limited to: Walt Disney, Donald Trump, Henry Ford, Abraham Lincoln, George Foreman and Wayne Newton. Examples >> And More Examples >>
What Does it Mean For the Business Filing Bankruptcy?
When a business files a Chapter 7 bankruptcy, the enterprise should immediately stop all business operations and for all practical purposes, it goes completely out of business. A bankruptcy Trustee is appointed to “liquidate” (sell) the company’s assets and the money is used to pay off business debts. Business debts may include money owed to secured creditors, unsecured creditors, investors, suppliers, banks, credit card lenders and even the owner or owners. A businesses filing bankruptcy is not generally allowed to retain any significant assets (if any) in Chapter 7 bankruptcy, but the Trustee may decide to “abandon” certain assets if the liquidation of the asset is more expensive than it is worth. Examples of property that may be abandoned by a bankruptcy Trustee may include, but is not limited to: old computers, software, books, office supplies, papers, files cabinets, tools, old equipment, non-working automobiles, uniforms, security systems, intellectual property and old furniture. Once an asset has been abandoned by the Chapter 7 bankruptcy trustee, the asset can be used or disposed of in any lawful manner by the person or organization that has possession of it.
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Coleman Legal Group, LLC’s Georgia lawyers practice in the areas of Divorce, Family Law, Estates, Trusts, Wills Probate, Bankruptcy, Immigration and Business Law. We have offices conveniently located at:
| Alpharetta Georgia North Point Park 5755 North Point Parkway Suite 52 Alpharetta, GA 30022 Phone: 770-408-0477 | Map |
Atlanta Georgia |
| Dunwoody Sandy Springs 1200 Abernathy Road Building 600 Northpark Town Center Atlanta, GA 30328 Phone: 770-408-0477 | Map |
Cumming Georgia |
| Johns Creek Duluth Georgia 11555 Medlock Bridge Rd Suite 100 Johns Creek, GA 30097 Phone: 770-609-1247 | Map |
Duluth Georgia |
| Kennesaw Georgia TownPark Center 125 TownPark Drive Suite 300 Kennesaw, GA 30144 Phone: 770-609-1247 | Map |
Atlanta Georgia Office |
Copyright © 2016 | Coleman Legal Group, LLC | All Rights Reserved. Coleman Legal Group, LLC • 5755 North Point Parkway, Suite 52 • Alpharetta, GA 30022 • 770-609-1247 DISCLAIMER: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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Danny Coleman, MBA, Attorney
Susan Martin, PE, MBA, Attorney
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