Oakland, Wayne, Macomb & Genesee Counties
If your business is in financial distress you may be considering bankruptcy to provide financial relief or restructuring. It is important to understand that federal laws govern B2B bankruptcy, but each state has its own filing fees and procedures. Our Detroit bankruptcy attorney has extensive experience in business bankruptcy in Detroit and Flint, Michigan and helps enterprises through the bankruptcy process.
Business bankruptcy in Detroit area - Our legal services
Chapter 7 bankruptcy
Chapter 7 bankruptcy is available to corporations, limited liability companies, partnerships, and proprietorships. We help you determine if Chapter 7 is the best solution for resolving your business finances by asking:
- Does your business have a future?
- Do you have assets or a structure that you can begin again after bankruptcy?
- Are your debts so massive that reorganization is not possible?
If you choose to file a Chapter 7 bankruptcy, you must also decide if it is going to be reorganized or liquidated. With Chapter 7, corporations are not discharged from their debts. Debts must still be paid to creditors to the extent that assets are available and by the priority of the claim. However, it is a means of liquidation. Funds resulting from the liquidation of the assets are used to pay for Chapter 7 filing expenses, taxes, and then creditors.
Chapter 13 bankruptcy
Corporations and limited liability companies cannot file for a Chapter 13 bankruptcy. If you are a sole proprietor or partnership, the advantage to filing a Chapter 13 is the ability to pay back debts instead of liquidating them. Although a business cannot file, we are able to file your Chapter 13 bankruptcy in your personal name, help reorganize your debts, and present the courts with a schedule to repay your debts over three to five years.
Detroit business work out
The term workout is used to describe a more formal, mutually-negotiated modification of debt that does not involve a bankruptcy filing. This is an agreement—a contract worked out between the debtor and creditors for payment of the debts. Is governed more by contract law principles than debtor-creditor rules and is considered B2B bankruptcy.
Workouts are often times referred to as compositions or extensions.
- Composition—a contract between a debtor and two or more creditors in which the creditors agree to take a partial payment in full satisfaction of their claims.
- Extension—a contract between the debtor and two or more creditors in which the creditors agree to extend the time for payment of their claims.
Necessary components of a business workout in Detroit and throughout Southeast Michigan include an offer to make a contract, the offer must be accepted, and there must be consideration (a legal term meaning something of value exchanged between the parties).
For your business bankruptcy needs
We understand that bankruptcy is a major disruption in your business. We work to minimize the burden
for you.
Detroit bankruptcy law firm of Victor P. Valentino and his experienced legal staff provide thorough, effective legal assistance with civil litigation, workers compensation, bankruptcy, personal injury and insurance law to residents of the Detroit Tri-County area. With offices located in Bloomfield Hills, he is well-positioned to assist clients in Wayne, Oakland, Macomb and Genesee Counties, including the Bloomfield, Pontiac, Waterford, Clarkston and White Lake areas.
To arrange your free consultation with a Southeastern Michigan personal, business or B2B bankruptcy lawyer, contact the Valentino Law Firm at 248-334-5340 in Metro Detroit.
