Foley Freeman represents business clients throughout Ada County and the state of Idaho. When a business is no longer operating profitably, we assist in business bankruptcy, helping clients find debt relief through Chapter 7 or Chapter 11, depending on their needs and goals. Our commercial law and bankruptcy attorneys are highly regarded for their bankruptcy expertise, litigation experience, and ability to resolve complex business matters.
Business Bankruptcy with Integrity
At Foley Freeman, our bankruptcy lawyers understand that in these challenging economic times, businesses, like individuals, face tough financial decisions. We are able to assist businesses in all matters related to bankruptcy, insolvency, and reorganization, and we handle proceedings with sophistication and integrity. When bankruptcy is done correctly, businesses and entrepreneurs can look forward to a fresh start and organizing a new venture at the conclusion of bankruptcy proceedings. For some businesses, it is best to liquidate assets under Chapter 7, but for others it is beneficial to reorganize under Chapter 11.
- Dissolving a Financially Troubled Business through Chapter 7. When a business can no longer operate because of debt, Chapter 7 can provide necessary relief from creditors and collectors. After filing for Chapter 7, the business’ assets are sold for cash that is distributed among the business’s creditors, and all operations are ceased unless continued by the bankruptcy trustee. Unlike an individual debtor, corporations do not receive a bankruptcy discharge. Rather, the entity is dissolved.
- Reorganizing Business Debts with Chapter 11. A Chapter 11 bankruptcy, often referred to as a “business reorganization,” is commenced by the filing of a voluntary petition by the debtor, or the filing of an involuntary petition by creditors. Like other chapters of the Bankruptcy Code, Chapter 11 provides for an automatic stay, which affords the debtor time to formulate a plan to pay back creditors. When a corporation files for Chapter 11, the personal assets of the corporation’s stockholders are not at risk.
- Reorganizing under Subchapter V. In order to file a subchapter V case, the debtor must be a small business pursuing business activities and have combined total secured and unsecured debts of $7,500,000 or less, not less than 50 percent of which arose from the commercial or business activities of the debtor. Subchapter V allows for a more streamlined and simple process of reorganization for certain small businesses.
In some cases, the liquidation of business assets, or the creation of a satisfactory financial reorganization plan, can be a very complex and extensive undertaking. We have substantial experience helping business owners and businesses successfully navigate Chapter 7 and Chapter 11 bankruptcy proceedings.
Seek Advice & Counsel from an Experienced Business Bankruptcy Attorney
If your business is facing bankruptcy, do not hesitate to contact Foley Freeman. The more proactive you are about handling debt, the better your chances of protecting the assets of your business and leveraging the protection provided under bankruptcy law.