Massachusetts Business Bankruptcy
The lawyers at Grantham | Cencarik, PC have years of experiences assisting businesses with with their debt problems. We represent clients in Boston, Cambridge, Danvers, Plymouth, and throughout Eastern Massachusetts.
Can My Business File Bankruptcy?
Businesses in Massachusetts are organized in the following manners: Corporations, Limited Liability Companies, Partnerships, and Proprietorships.
Corporations, LLC, Partnerships: These types of businesses all have either shareholders or partners and may file either a Chapter 7 or Chapter 11 Bankruptcy in the name of the company itself.
Proprietorships: If you are not incorporated or organized with the Massachusetts Secretary of State, and don't have a partner, you are a sole proprietorship. A sole proprietorship is an extension of the owner - so the business cannot file bankruptcy itself. If you own a proprietorship who is facing financial problems, then you, as the owner, must file personally. For more information, visit our Personal Bankruptcy Page.
Chapter 7: Business Liquidation
Under a Chapter 7, all business assets are liquidated and the company ceases operations. Upon filing a Chapter 7, a trustee is appointed by the Court. The trustee will collect and sell the assets that are not encumbered by a lien (lien holders will take possession of the property that secured their loan). After the assets are sold, the proceeds are used to repay unsecured creditors.
Chapter 11: Business Reorganization
Typically, a Chapter 11 Bankruptcy is a debt reorganization. A Chapter 11 allows a corporation to reorganize, giving it an opportunity to restructure its debt and get out from under certain burdensome leases and/or contracts. When a corporation or llc files a Chapter 11, the business continues operations and management typically remains in control.
A Chapter 11 can also be used as a method for the management to voluntarily liquidate the assets of the business and pay the creditors from the realization. A corporation generally chooses this option if it chooses to wind down operations and obtain a higher return on it assets than it would realize under a Chapter 7.
For More Information on Chapter 11, visit our Chapter 11 Bankruptcy Information Page, or contact a Massachusetts attorney by calling (617) 497-7141.
Call for a Consultation With A
Boston Area Lawyer
(617) 497-7141
Due to the complexity of business bankruptcy cases, it is important that you contact us to schedule an in office meeting. The initial telephone call is free; however, you may be required to pay a small deposit to cover the in-office consultation. During this consultation we will review certain financial records and will be prepared to offer recommendations immediately. This gives you an opportunity to meet, or speak with the attorney that will be working with you on your matter.
The Boston lawyers at Grantham | Cencarik, PC operate as a debt relief agency located in Cambridge and serving clients in Boston and eastern Massachusetts, including Cambridge, Braintree, Somerville, Revere, Brockton, Chelsea, Peabody, Quincy, Saugus, Winthrop, and the following counties: Essex, Middlesex, Norfolk, Plymouth, and Suffolk.