Corporate Bankruptcy

A corporate bankruptcy is where a corporation and/or its partners file either Chapter 11 or Chapter 7 bankruptcy. Filing Chapter 7 means a court appointed trustee sells the corporation’s assets and distributes the funds to creditors. When filing a Chapter 11 for a corporate bankruptcy, the business stays in operation and a debtor in possession, usually the debtor, works as a trustee. A court approves a plan to reorganize or liquidate the corporation’s assets.

While filing for a corporate bankruptcy might seem like a viable option, it is usually more trouble than it is worth. A firm’s assets are usually sold to a third party and any shareholders connected with the corporation receive nothing. Creditors get the corporation’s full value in assets and nothing else. In addition, new laws require more paperwork, which translates into more time spent writing and researching than running the business, a thorough examination of the corporation’s books by a trustee, and the possibility of filing separately as an individual. Corporate bankruptcy is not something business owners want to face, even in the most dire of circumstances.

American Finasco, Inc. has provided another route for corporations in a corporate bankruptcy situation. Through its Debt Resolution Plan, American Finasco, Inc. will save corporations the cost of filing, distribute leftover funds to creditors, provide affordable legal representation, and stop the harassing phone calls, which plague business owners who pursue a corporate bankruptcy. American Finasco, Inc. also provides services such as debt consolidation, debt counseling, debt settlement and can even help find ways to avoid bankruptcy.

A corporate bankruptcy can remain on record for up to 10 years. Not only does a corporation have to allow a court-appointed trustee to handle its affairs, there also may be time, and money, spent in court. A corporate bankruptcy is not always the best choice in solving a debt problem.

American Finasco, Inc. helps corporations find their way back to operating in the black.

American Finasco, Inc. knows that the main thing about running a business is simply for owners to be able to run that business. Having to spend time with courts, trustees, paperwork and other aspects associated with a corporate bankruptcy distract owners and usually that will result in failure. By following American Finasco, Inc’s proven plan, corporations will have a better chance of getting back to being successful.

American Finasco, Inc’s plan works in a way so that corporations do not have to be placed in more debt just to get out of debt. They prevent many of the negatives connected to corporate bankruptcy. Their plan is a great solution for corporations facing corporate bankruptcy.

Considering Corporate Bankruptcy?

[Posted on November 13]

In these incredibly tough economic times, it is quite easy for a company with decent fundamentals to slip into debt and find itself considering bankruptcy.  While corporate bankruptcy has in the past been an effective solution to receive a clean slate or fresh start, today corporate bankruptcy for many businesses is not the best decision available.  At American Finasco, we have helped numerous companies avoid corporate bankruptcy, reduce debt and help a business once again get on the right track to profitability.  If you are experiencing tough economic times and are weighed down by lots of debt American Finasco can help.

Avoid Corporate Bankruptcy
There are quite a few reasons why a company should avoid corporate bankruptcy.  Obviously, corporate bankruptcy is not for everyone, however over the last few years the bankruptcy laws have changed making the entire process more stringent than ever- not to mention today’s bankruptcy laws definitely lean to the side of the creditors.   For those that are considering corporate bankruptcy, a few downsides of the process include the fact that if your business has even a small amount of personal debt tied to your business, the court can require you to go personally bankrupt instead.  In addition, today’s bankruptcy courts can be extremely restrictive on how your company operates, unfortunately many companies require some flexibility to stay afloat at this critical time. 

Finally, another downside of the corporate bankruptcy process is that it is extremely costly.  Going bankruptcy is extremely expensive, not only in filing, but in legal fees as well.  Many businesses regret not trying to negotiate their debt down with creditors in the first place than pay exorbitant legal fees.

American Finasco Can Help
American Finasco has over 20 years of experience in helping companies avoid corporate bankruptcy.  Throughout the years, we have helped thousands of businesses avoid bankruptcy and get back on the right track to success.  We offer a wide range of strategies that have been proven to work time after time.  Some of the strategies that can be helpful include: debt consolidation, debt negotiation, debt counseling, debt management, business loans and more.  In over 20 years of assisting companies, we have seen almost every debt situation imaginable, we are confident that we can help with yours.  For more information, please contact us today.

Read More Corporate Bankruptcy Articles Below:

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Strategies to Avoid Corporate Bankruptcy