Filing for Small Business Bankruptcy
If you have overwhelming business debt, you may be considering filing for bankruptcy for your troubled organization. While reorganization may be a viable option under Chapter 11, exploring bankruptcy under Chapter 7 may ultimately be your best option.
Keep in mind, a Chapter 7 bankruptcy your business will undergo liquidation by a trustee and at no expense to the shareholders. A Chapter 7 proceeding involves the complete closure of the business, followed by a sale of liquid assets to repay creditors. Filing under Chapter 7 is best when the business has no future or the debts are so overwhelming, restructuring is not the answer.
Under Chapter 11, the business undergoes a reorganization and the debtor may continue in business or in possession of its property as a fiduciary. The business must have a plan in place to pay back creditors over time, as opposed to complete discharge of debt.
Filing for bankruptcy requires exhaustive information about your credit history, past income tax returns and various other financial forms. The document below is designed to help collect information about your company and assist your attorney in assessing your company's financial situation in the event of bankruptcy. If you or your business are filing for bankruptcy or contemplating filing for bankruptcy, you should collect the following documents (if they exist) and provide them to your attorney.
Bankruptcy Checklist
Legal name of Company: _________________________ Location of Company headquarters: _________________________ _________________________ _________________________ Mailing address, if different: _________________________ _________________________ _________________________ Addresses for other locations: _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ Telephone number: _________________________ E-mail address: _________________________ Federal tax identification number: _________________________ State tax identification number: _________________________ Legal status of the Company (corporation, partnership, sole proprietor, other): _________________________ If the Company is a corporation, list: Number of shares of preferred stock: _________________________ Number of shares of common stock: _________________________ List person(s) with power to vote 20 percent or more of Company's securities: _________________________ List corporation(s) with power to vote 20 percent or more of Company's Securities: _________________________ Is the Company publicly held? _________________________ If publicly held, what is your SEC File number? _________________________ Has the Company used any trade or assumed names in the last six years? _________________________ List all prior bankruptcies, if any: _________________________ List any pending bankruptcies of partners, affiliates, officers or guarantors, if any: _________________________ Name, address, account number of financial institution(s) where the Company maintains accounts: _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ List the amount of insurance on any real property owned by the Company: _________________________ Name of agent: _________________________ List the amount of insurance on any personal property owned by the Company: _________________________ Name of agent: _________________________ Are you current on payroll taxes (FICA, withholding, unemployment)? _________________________ If not, describe status of delinquent taxes: _________________________ _________________________ _________________________ _________________________ Have all applicable tax returns been filed? _________________________ Is any governmental agency conducting or planning to conduct an investigation of the Company? _________________________ Has any utility threatened to cut off service to the Company? _________________________ Give a brief description of the Company's business: _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ Does the Company have "petty cash?" _________________________ If so, in what amount? _________________________ Name, address, state, zip, phone number for Company accountant: _________________________ _________________________ _________________________ _________________________ _________________________ |
How an Attorney Can Help Your Business Through Bankruptcy
Declaring bankruptcy on behalf of your business is a major step. There is a large amount of paperwork involved and numerous considerations when deciding whether Chapter 7 or Chapter 11 is best for your organization. Let a skilled business and commercial law attorney answer your questions and lead you through the process.
Additional Resources
