You started your business intending to be successful and able to pay your business debts. However, no matter how well-prepared a business plan may be, sometimes factors completely out of a business owner’s control change the business environment, and suddenly there is far less money coming in than has been promised out.

If your business is in a situation where mounting debts threaten its viability, there is relief available. Bankruptcy can be a way for a business to pay back creditors without having to close its doors. While no one wants to file for bankruptcy, doing so can be a strategic business decision that can give a business owner a fresh opportunity to make the business work.

Bankruptcy attorney Kelvin Birk of the Birk Law Firm in Cape Giradeau, Mo, is a Certified Public Accountant (CPA), as well as an attorney and can analyze your situation from both perspectives to determine if business bankruptcy is right for you. He finds creative solutions for business owners who are struggling to manage debt and keep their businesses going. Call the Birk Law Firm today for a free consultation to determine the best way to get past your debt and start rebuilding your life.

Why Choose Our Business Bankruptcy Attorney in Missouri?

Hiring a business bankruptcy lawyer can take much of the stress out of the process, but it is important to find someone with the skills and resources to get the results you need. As a business and tax law attorney, Kelvin Birk offers expertise in both legal and financial areas and can provide the guidance you need. Here are some reasons why we believe you should choose our firm:

  • We are experienced. Attorney Kelvin Birk has 50 years of combined experience in accounting and business, bankruptcy and tax law; he has been admitted to practice in federal bankruptcy court for almost 15 years.
  • We care about our clients, and many testify to the quality of our services. We utilize our knowledge from previous client experience in order to propose workable business reorganization or liquidation plans.
  • We are local and know the bankruptcy courts and how to adjust for local legal preferences. We have built a network of people and resources that complement our legal and accounting services
  • We offer free initial consultations with no obligations, to find the best way to handle your situation.

How Our Business Bankruptcy Attorney Can Help You

When filing for bankruptcy, timing is critical, as delays can create problems that make your situation worse.  When you have Birk Law on your side, we start working for you immediately. Depending on the situation, we will:

  • Assess your financial situation and provide guidance: We conduct a thorough analysis of the company’s assets, liabilities, income, and expenses to determine the most appropriate type of bankruptcy based on the specific circumstances of your business. Chapter 7 involves liquidation of assets to repay creditors, Chapter 11 focuses on reorganization for businesses to continue operations, and Chapter 13 is designed for individuals or sole proprietors with a regular income.
  • Navigate all filings and legal procedures: Bankruptcy proceedings involve a series of legal procedures and paperwork, and we will ensure that all required documentation is accurate and submitted within the specified timelines. Kevin’s legal and accounting expertise can help streamline the bankruptcy process and minimizes the risk of making costly mistakes.
  • Negotiate with creditors: In situations that involve repayment plans or settlements, we will negotiate with creditors to reach favorable terms that can help a business emerge from bankruptcy with a more manageable financial outlook.
  • Protect assets: We know the importance of protecting both business and personal assets during bankruptcy proceedings and can develop strategies to shield certain assets from liquidation.

Business Bankruptcy Attorney Explains Bankruptcy Options

Under the federal Bankruptcy Code, businesses have several options when considering filing for bankruptcy, depending on how they operate and the amount of accumulated debt. Referred to by the chapter of the Bankruptcy Code that authorizes them, options include:

Chapter 11 – Bankruptcy for Business Reorganization

A Chapter 11 bankruptcy is for a business, other than a family farm, that has too much debt to qualify for other options and intends to continue to operate under a debt repayment plan. Chapter 11 is primarily used by business entities like corporations and partnerships, but it is also available to individuals. Debtors usually have four months to submit a proposed repayment plan, and getting creditor approval may require ongoing negotiation. Once a plan of reorganization has been confirmed, the debtor will begin repaying creditors in 30 to 90 days, and there is typically no time limit for repayment. Filing for Chapter 11 bankruptcy will stay collection attempts by creditors.

A Small Business Case is for a business that has less than a certain amount of secured and unsecured debt, with at least 50% of the debt arising from business activities.

Chapter 12 – Bankruptcy for Family Farms

Chapter 12 of the Bankruptcy Code is for family farmers and fishermen who have ‘regular annual income’ from their operations. Under Chapter 12, you come up with a plan to repay creditors over a 3- to 5-year period under terms that are more favorable for reorganization and less complicated and expensive than a Chapter 11 proceeding.

To file a Chapter 12 bankruptcy, you must meet certain qualifications regarding income and debt and must participate in credit counseling. Filing the petition will stay most collection activities by creditors, and the bankruptcy may be discharged after all payments have been made

Chapter 13 – Bankruptcy for Reorganizing Sole Proprietors

Debt reorganization for individuals who are sole proprietors is governed by Chapter 13. Qualified persons must have a steady income and combined secured and unsecured debts no greater than $2,750,000. A debtor must submit a repayment plan, usually within 14 days of filing, and will have 3 to 5 years to make payments to creditors through the Bankruptcy Trustee.

Chapter 7 – Bankruptcy to Liquidate Businesses

A business that files for bankruptcy under Chapter 7 must close and have its business assets sold by a Bankruptcy Trustee who will distribute the proceeds to creditors. For business entities, the unpaid balance of debt remains due and payable after the bankruptcy, and this needs to be carefully considered before filing under Chapter 7.

If you are operating as an LLC or corporation, a business bankruptcy under Chapter 7 or 11 should not affect your personal credit, unless you signed a personal guarantee for a debt.

Get Help from a Business Bankruptcy Attorney

Declaring bankruptcy is a challenging and complex process, but a business bankruptcy lawyer can help. At the Birk Law Firm, we take the time to get to know your business situation so we can find the best course of action that enables you to emerge stronger in the end.

Call us at 573-332-8585 today for a free consultation to start working toward a brighter financial future.

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Why Choose Birk Law?

Birk Law Firm is a small firm by choice that is big on client services. Attorney Kelvin Birk and his team are responsive to their clients’ needs. When we sign on as your law firm, you can count on us for strong legal counsel, from negotiations to settlement to trial.

Cape Girardeau Law Firm Kelvin BirkOur clients benefit from the intertwining of Kelvin Birk’s legal and CPA background and experience. We provide well-rounded advice to solve both legal and financial issues and to come up with creative solutions. We use modern technology to deliver legal services in a more efficient and client-focused manner than was previously possible.

We provide personalized and compassionate service. We believe that each client’s matter is the most important matter in the world to them, and we strive to treat it that way.


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