Starting and running a small business can be fraught with legal issues that require professionals and attorneys. Closing a business can be even more complicated.
Legal problems with your business are unavoidable. Not taking legal matters seriously can hurt your business and your wallet. As a small business owner for over 10 years, we know what small businesses need and the challenges they face daily. Genuine expertise and experience come in very handy. We assist businesses in litigation and in bankruptcy. Whether you are a debtor filing bankruptcy or a creditor pursuing collection in bankruptcy, we are here to help you understand the process.
In bankruptcy, a business can be a debtor that is filing for bankruptcy. When a business files a Chapter 7 bankruptcy, the business will shut down and liquidate. The business will no longer exist and cannot continue its operations. A Chapter 7 business bankruptcy case usually lasts about 12-18 months.
The costs involved in filing a Chapter 7 bankruptcy include:
- Attorney’s fees – All attorney’s fees vary by experience of the attorney and the complexity of the case. Currently, Feher Law’s business bankruptcy fees begin at $2,500.00.
- Filing fee – The current filing fee for a Chapter 7 bankruptcy is $335.00. This amount is paid directly to the Bankruptcy Court at the time of filing your case.
When a business files a Chapter 11 bankruptcy, the business will reorganize, create a plan to address its debt, and come out of bankruptcy able to continue. A Chapter 11 business bankruptcy case is usually active for 18-24 months. Once a Chapter 11 reorganized plan is confirmed by the court, the case may be administratively closed. At that point, the Chapter 11 case is no longer active. Once a Chapter 11 case is completed and all required payments are made, the Chapter 11 case is reopened to obtain a discharge for the business. Once a business receives a bankruptcy discharge, the discharge signifies to the all creditors that the case is completed, and all debts are reorganized.
The costs involved in filing a Chapter 11 bankruptcy include:
- Attorney’s fees – All attorney’s fees vary by experience of the attorney and the complexity of the case. Currently, Feher Law’s business bankruptcy fees begin at $7,500.00. This amount includes $2,500 for the pre-petition work required to prepare the case for filing. The remaining $5,000 is placed into trust and held for the business. After the business bankruptcy case is filed, hourly billing begins. All post-filing fees must be approved by the bankruptcy court. Any additional amounts due and owing will need to be paid from the business debtor to Feher Law.
- Filing fee – The current filing fee for a Chapter 7 bankruptcy is $1,717.00. This amount is paid directly to the Bankruptcy Court at the time of filing your case.
- Trustee fees – Each quarter, the business will need to pay fees to the United States Trustee’s office for the administration of the Chapter 11 case. The minimum quarterly fee is $325.00 and increases depending on how much money is disbursed from the business each quarter.
As with everything else we do, the focus is on practical advice, no boring lawyer language, and everyday pricing options so you know exactly what your costs are.