Has your business been forced into an involuntary bankruptcy? You may be wondering what this could mean for your company and if you need legal help. When a company is faced with an involuntary bankruptcy, this could mean a complete liquidation of your company’s assets. This is why Kajioka & Associates Attorneys At Law will define involuntary bankruptcy and if your company actually qualifies for involuntary bankruptcy and why you’ll need help from a business defense attorney.
An involuntary bankruptcy occurs when a business or business owner owes money to creditors. A creditor is a person or persons that a business owes money to. The creditor or creditors, if not paid, can request that the debtor file bankruptcy. Typically, this is the last effort from the creditor to get the money owed to them by forcing the indebted company into an unwanted bankruptcy. The remaining funds of the indebted company go to the creditors. In order to combat the involuntary bankruptcy, the company will require legal assistance.
Objecting to an Involuntary Bankruptcy
If your company is being forced by a creditor or creditors into involuntary bankruptcy, you as the debtor, have the right to object to the bankruptcy petition. The company has 20 days in which to react to the involuntary bankruptcy. There is a court hearing schedule where both the creditor and debtor have the right to state their case. However, if the debtor wins the case they are eligible to collect fees and costs of the prosecution during the defense process.
Requirements of an Involuntary Bankruptcy
In order for your company to be forced into an involuntary bankruptcy your company must meet the entire requirement necessary in order for the creditor to file. The requirements that a business needs to meet to become a victim of an involuntary bankruptcy are:
• The minimum amount of debt is reached.
• The minimum amount of creditors is owed.
Each will vary depending on the nature of the company and the individual that is in question.
What Happens After Filing a Chapter 13 Bankruptcy; Chapter 7 Liquidation
Some will attempt to file an involuntary bankruptcy as a Chapter 13. However, this means the debtor’s business will face a Chapter 7 liquidation. A Chapter 7 liquidation is when a debtor is forced into an involuntary bankruptcy and all assets will be distributed among all of the creditors that filed the involuntary bankruptcy. When all the assets are liquidized the company or business typically can not recover and the said company is forced to shut down. When a company is faced with a Chapter 7 liquidation they will be forced into an involuntary bankruptcy where the said company will require the aid of a business defense attorney.
Experienced Bankruptcy Lawyers in Greater Las Vegas, Nevada
If your business has had a chapter 7 liquidation or involuntary bankruptcy filed against them, you can turn towards Kajioka & Associates Attorneys At Law. We have experience and expertise in Business Law and will provide your company with the defense it needs. Contact Kajioka & Associates Attorneys At Law today.