Comments on: Bankruptcy Alternative – is Bankruptcy Still your Best Bet?

By: maxx

maxx — Mon, 23 Nov 2009 17:42:59 +0000

You either get more and more credit saveing company form going insolvent or Liquidate the firm and sell all their assets and pay the bank loans or show company as bankrupt so you wont have to pay much after courts decsion of offical bankrupcy.References :

By: michael c

michael c — Mon, 23 Nov 2009 17:40:59 +0000

There are two basic types of business bankruptcy – liquidation (Chapter 7) and reorganization (Chapter 11). Chapter 7 is what it says – the remaining assets of a business are sold and what proceeds are left are distributed to the various classes of creditors.

Chapter 11 allows a business time to develop a plan of reorganization that will provide some payment to outstanding creditors. The plan of reorganization must be voted on by the creditors and approved by the court before implementation.

As an alternative, you could write all of your creditors to explain your desire to avoid bankruptcy and offer them a percentage of what is due them in lieu of filing for bankruptcy. I have seen a couple businesses avoid bankruptcy by using this method. I would suggest that you work with an accountant or attorney to assemble the data and compute what you could afford to offer.

Michael Casey CPA

Business Consultant

608-271-0068

-References :

By: Girl360

Girl360 — Mon, 23 Nov 2009 17:38:59 +0000

Have someone buy the biz. There are consultants out there that do nothing but specifically help companies stay out of bkcy. You have to seek them out, though.References :

By: Eclipseoftheheart

Eclipseoftheheart — Mon, 23 Nov 2009 12:36:08 +0000

What are some alternative to commercial/corporate or business bankruptcy?I would like to know the many alternatives a business can pursue instead of filing for bankruptcy. The more alternatives the better. They must be legal though.