#bankruptcy attorneys rockville md

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Common mistakes made on the Bankruptcy Means Test could be avoided with the right legal advice. Our Rockville, Maryland, bankruptcy law office right away to avoid making these errors. We can help you avoid common mistakes made on the bankruptcy means test. Contact us today at (301) 424-2834. https://sarikurlandbankruptcylaw.com/common-mistakes-made-on-the-bankruptcy-means-test/

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Rockville MD Cheap Chapter 7 Bankruptcy Attorneys

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Can a Creditor Force a Business into Involuntary Bankruptcy?

Financially distressed companies may reach a point where bankruptcy is the best path forward. When most business owners and managers think about filing for bankruptcy protection, they think about making a long, hard choice after carefully considering the needs of their company. However, in some cases, aggressive creditors can actually force a business, involuntarily, into filing for bankruptcy.

Involuntary Bankruptcy: Chapter 7 and Chapter 11

When certain conditions are met, the United States bankruptcy code allows creditors to file an involuntary bankruptcy petition on behalf of a business. In these cases, creditors can only push a company into either Chapter 7 bankruptcy or Chapter 11 bankruptcy. For companies that have less than 12 creditors, one creditor can petition to do this alone. On the other hand, when a company has at least 12 total creditors, then a minimum of three of the creditors must agree to join the involuntary bankruptcy petition.

Why Would a Creditor File for Involuntary Bankruptcy?  

Involuntary bankruptcy is a potential debt collection tool. When a bankruptcy petition is successfully filed, it triggers an automatic stay. The automatic stay puts an immediate stop to almost all collection efforts. Certain creditors may want an automatic stay to be put in place to keep a company from transferring away all of its remaining assets, either to another creditor or to a related firm.

What Can a Business Do to Prevent an Involuntary Bankruptcy?

If a creditor or group of creditors files an involuntary bankruptcy petition on behalf of your business, you have two options.

Accept the filing: This means the bankruptcy case will move forward.

Object to the filing: This sets up a legal fight over the bankruptcy.

Should your company object to an involuntary bankruptcy filing, you need to get an experienced business attorney by your side as soon as possible.

At this point, your case will be set to go before a bankruptcy judge who will hear both sides and determine whether or not your business is legally required to file for bankruptcy protection. Your business attorney will be able to review the specific circumstances of your case and determine the best way to protect the rights and interests of your firm.

Let a Business Attorney Help

An experienced business lawyer in Rockville, MD can protect the rights of businesses just like yours. If your business is in need of legal assistance, please contact a law firm today to schedule a confidential case evaluation.

Thank you to our friends and contributors at The Law Office of Daniel J. Wright for their insight into business law and bankruptcy.

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Rockville MD Cheap Chapter 7 Bankruptcy Attorneys

Watch video on YouTube here: https://youtu.be/-xmPYGUzSvo via MARYLAND CHAPTER 13

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Rockville MD Cheap Chapter 7 Bankruptcy Attorneys

Rockville MD Cheap Chapter 7 Bankruptcy Attorneys

[sarikurlandbankruptcylaw]

[sarikurlandbankruptcylaw]

Business or civil disputes in Rockville, MD? Get legal help from an experienced Rockville litigation attorney from Kurland Law Group. For more information contact us at 301-321-8394.

[sarikurlandbankruptcylaw]

[sarikurlandbankruptcylaw]

Create a comprehensive and strategic asset protection plan with the legal help of our experienced Rockville asset protection lawyers.Kurland Law Group is the best bankruptcy firm that can help. For more information contact us at (301) 424-2834.