Chapter 11 Bankruptcy Law Firm Oklahoma City, OK
The word “bankruptcy” has such a negative connotation, and it is easy to forget that the process is intended to help those in tough financial situations. In other words, bankruptcy is not necessarily a “last resort” for individuals and businesses in Oklahoma, and it instead may be a prudent choice in the face of unexpected financial challenges. The clearest reminder of this is the fact that, when not handled properly, bankruptcy petitions can be denied. The federal bankruptcy code has very clear substantive and procedural rules that must be followed. Failure to abide by those requirements may lead a judge to reject one’s attempt to declare bankruptcy. This is why it is critical to consult with a Chapter 11 bankruptcy law firm Oklahoma City, OK companies trust.
A denial of petitions is perhaps most common with business bankruptcies. One common scenario that that plays out in denials is when a company claims they have millions of dollars in debt, yet investigations by the trustees discover that the business hid assets prior to filing for bankruptcy.
The liquidation process required in certain bankruptcies involves the sale of all nonexempt assets to partially pay creditors at least some of what they are owed. Consequently, trustees managing the bankruptcy must catalog all the assets own. Sometimes owners may attempt to skirt the rules by hiding assets from trustees, hoping to avoid losing them in liquidation. When that happens, and the court finds out about it, there are serious ramifications. Not only will this result in the bankruptcy petition being denied, leaving the company still owing hundreds of thousands, if not millions, of dollars to creditors, but it can also result in criminal charges for the business owner.
It is hard to get a fresh start with that looming liability.
Business Bankruptcy Help
If your business is struggling financially and you are considering filing for bankruptcy, a debt attorney Oklahoma City, OK suggests some questions you should ask yourself first. The first step is taking a close look at the company’s finances to see where it truly stands. It is critical to know what your assets, debts, and future revenue will be in order to make the right decision for your company.
Have you considered non-bankruptcy options? Bankruptcy is a huge step for any business and may not be the right choice for your situation. Our firm can help you investigate other options, including voluntary debt restructuring or debt consolidation.
Call Our Office Today
Small businesses in our area must seek out the help of a bankruptcy attorney if they are considering their long-term financial options. When not handled properly, even innocent mistakes can lead to a petition being denied, resulting in serious harm to businesses and their owners. The team at the Law Offices of Marty D. Martin, a Chapter 11 bankruptcy law firm in Oklahoma City, OK, is here to help you with all your business financial legal needs.
“Mr Martin is amazing. He was and is still very helpful. Always willing to answer questions. I would definitely recommend his services.”