Business lawyers guide bankruptcy document review actions for Florida businesses.

Florida – July 25, 2022

Bankruptcy is not always a negative occurrence and can save a business from going under by restructuring in accordance with Federal Bankruptcy laws. Florida business lawyers have impressive impacts when they work with bankruptcy attorneys early on regarding financial struggles that could lead to harassment from bill collectors and other debtors for a corporate entity in Orlando.

Business bankruptcy proceedings.

Bankruptcy proceedings are legal actions involving a business entity that is unable to repay outstanding debts and are managed by federal courts that follow the rules of U.S. Bankruptcy Code. The bankruptcy process begins with the debtor, or a representative of creditors filing a petition with bankruptcy court. All bankruptcy cases in the United States are managed through federal courts and decisions are made by bankruptcy judges who determines debtor eligibility and debt discharges. A business lawyer can review contracts with clients to determine situations where they may reduce outstanding payments due that can be included in the bankruptcy settlement.

Chapter 11 Bankruptcy.

Florida businesses often file Chapter 11 bankruptcy using a Florida bankruptcy attorney, so they can reorganize, while remaining in business. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs, and find additional avenues to increase revenue. Repayment plans are often set up under the court’s supervision.

The steps debtors should take as they prepare for bankruptcy include:

constructing a master list of all business debts and company assets through review by a knowledgeable business lawyer to make a recommendation to debtor of which debts a business wants discharged, and what assets should be maintained to protect a business’ future stability when it goes to the bankruptcy court representative,
avoiding application for additional lines of credit, or maximized spending on current open business cards,
limiting draws on retirement accounts as safeguarded during settlement discharges and individuals may need that protected funding later, and
transferring business assets close to the time of filing a petition because the court may discern this as an attempt to hide them.

The most common advantage to filing a bankruptcy petition is that debt collectors will have to stop harassing business debtors with phone calls, letters, and potential lawsuits. This action is an automatic stay, and creditors must cease actions for repossession, wage garnishment, foreclosure, and bank levies.

Seek legal counsel.

Experienced Florida business lawyers at Legal Counsel, P.A. in Orlando will assist with the review of client contracts and accounts payable information to prepare a business entity to file for a company restructure under the Federal Bankruptcy laws.

Legal Counsel, P.A.

189 S. Orange Ave., Ste. 1800
Orlando, Florida 32801

Phone: 407-982-4321

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