The Burton Law Firm is here to facilitate the operation of your business. Usually, this guidance moves your company in the direction of profit, freedom from liability, and growth. In some unfortunate instances, it is our duty to help you dismantle your creation. There are many pitfalls and dangers associated with the closing of a business, and we are familiar with them all. When it is time to start on the difficult process of closing down your business, consider letting The Burton Law Firm help.
There are two principal options to consider when your business is faced with closure. The first option is dissolution, and the second option is bankruptcy. In both cases, it is important to be sure that the proper procedures are followed, and all requirements have been fulfilled. Having the right group of attorneys at your side is critical as you attempt to close your business. The experienced attorneys at The Burton Law Firm are here to assist you in successfully completing this project.
Dissolution is the formal process that a business entity follows to cease operations, liquidate assets, and distribute funds to creditors and owners. During this process, you must ensure that formal dissolution procedures are followed. You must also take care regarding the decisions you make regarding the liquidation of assets and payment of funds. Improper actions may invalidate the dissolution and could expose you to the risk of personal liability. In extreme cases, the creditors of a business can force the involuntary dissolution of the business.
Corporate bankruptcy may be called for when a business has few assets and numerous creditors. Some businesses can reorganize through bankruptcy procedures and become profitable again. Management would continue to run the organization, but significant business decisions would need bankruptcy court approval. Other businesses choose to go completely out of business. A trustee is appointed, and the company assets are sold to pay off debt. In such instances, secured creditors are paid first. Unsecured creditors, like bondholders, are paid next, and stockholders are paid last. In cases where secured and unsecured creditors do not receive full payment, stockholders may not receive anything.
Our attorneys are skilled in advising businesses and business owners during the process of dissolution and corporate bankruptcy. We frequently negotiate with creditors to reduce business debts, release personal guarantees, and establish payment plans. Regardless of the situation, we can help guide you through the difficult decisions that you face when bringing your business to a close. Please contact Michael Iwahiro with any questions about your individual case.