Sometimes when larger businesses outside of South Carolina begin having financial difficulties, small businesses within the state are also impacted financially. Because of their dependence on these larger businesses many local businesses may face obstacles such as increased competition, cash flow problems, failure to collect receivables and many other hurdles. Federal Bankruptcy Law provides financial relief in these situations.
A sole proprietor can file for bankruptcy protection under Chapter 7, Chapter 13, or Chapter 11 of the bankruptcy code. A corporation, partnership or Limited Liability Company (LLC), may file for protection under chapter 7 or chapter 11 of the bankruptcy code. This is because these forms of businesses are separate and distinct legal entities from their owner(s). Such a business must protect its own assets and resolve its liabilities. All businesses, with the exception of a sole proprietorship, therefore have the option of filing either a Chapter 7 (i.e. closing the business and surrendering assets to creditors) or Chapter 11 bankruptcy (i.e. continuing the business and retaining all assets necessary for operation). A Chapter 13 Bankruptcy is a smaller reorganization in which consumers and/or sole proprietors retain all necessary assets and reorganize or restructure all debts.
Probably the most important facet of bankruptcy law is the "automatic stay". This is a legal phrase which means that upon the filing of a bankruptcy petition with the Federal Bankruptcy Court, all of your creditors (including the IRS and other governmental creditors) are prohibited from contacting you in any manner. They cannot telephone you or send harassing letters. Any legal proceedings (except for criminal matters) are prohibited from further action, without the permission of the Federal Bankruptcy Court.
Few attorneys handle bankruptcy cases and of those few who do, even fewer are experienced in handling business cases. Therefore, it is imperative that a business owner seek the advice of an experienced businessbankruptcy attorney. DO NOT BE FOOLED BY LARGE ADVERTISEMENTS IN THE TELEPHONE BOOK OR THOSE WHO STATE THEY HANDLE BUSINESS BANKRUPTCY CASES. Just as you would ask other physicians for the name of an experienced physician to handle a serious medical matter, feel free to ask other bankruptcy attorneys to suggest an experienced business bankruptcy attorney.
Robert H. Cooper of The Cooper Law Firm is one of the most experienced business and consumer bankruptcy attorneys in the state of South Carolina. He has handled thousands of cases and is well known among debtor and creditor attorneys, trustees and judges as an experienced and successful bankruptcy attorney. He has fought hard to represent debtors and has set new law in the bankruptcy field in the state of South Carolina.
