Small Business Bankruptcy Attorney in Arizona

Is your small business caught in a financial squeeze? When debts pile up and the future seems uncertain, you deserve clear, honest help.

At Yusufov Law Firm, we stand ready to assist you through this challenging time, offering straightforward advice and support that can help you take the next step.

What Is Small Business Bankruptcy?

Small business bankruptcy is a legal process that allows a business to reorganize its debts, and eliminate many debts,  in order to continue operating.

This process is different from personal bankruptcy and comes with rules that apply only to businesses. It gives business owners a chance to get a fresh start by dealing with overwhelming debt in an orderly manner.

Common Reasons Businesses File

There are many reasons why a business might decide to file for bankruptcy. Some of the common causes include:

• Economic Slowdowns: A drop in the market can reduce income and make it hard to keep up with bills.
• Financial Missteps: Mistakes in planning or managing funds can lead to a situation where debt grows too fast.
• Unexpected Costs: Events such as lawsuits or natural disasters can bring on expenses that were not planned for.
• Problems Collecting Payments: When customers delay or skip payments, cash flow suffers, making it difficult to cover ongoing costs.

Options for Bankruptcy in Arizona

In Arizona, business owners have a few paths to choose from when dealing with bankruptcy:

• Chapter 7: This option involves the sale of  business assets. The funds from these sales are used to pay off debts, and the business stops operating.
• Chapter 11: This choice gives you the chance to keep your business running while you set up a plan to repay debts over time. It allows for debt reduction and the reorganization of contracts and payments.
• Subchapter V of Chapter 11: Designed with smaller businesses in mind, Subchapter V offers a process with fewer requirements and lower costs. This option can help you reorganize your debts more quickly and with less expense.
• Other Methods: In some situations, debt negotiation or out-of-court arrangements might be available to help you resolve issues without a full bankruptcy filing.

How We Can Help Your Business

We know that dealing with bankruptcy can be overwhelming. That’s why we are here to explain every part of the process in plain language. From the very first conversation, until your case is resolved, we take care of the paperwork, court meetings, and discussions with creditors so you can focus on running your business. Our aim is to help you see your options clearly and decide what is best for your situation.

Working With You to Create a Plan

Every business is unique. We work closely with you to develop a plan that fits your financial situation and your goals. We review your case carefully and set up a strategy that reflects your needs. Our team listens to your concerns and explains your choices so that you can move forward with confidence.

Protecting Your Business Assets

One of the main concerns for many business owners is the risk to their valuable assets. We review your case to identify which assets might be at risk and find ways to keep your key resources safe under the law. By planning ahead and taking advantage of legal protections, we work to shield your business from unnecessary loss.

Insight From Representing Creditors

Our background includes representing creditors in bankruptcy cases. This work gives us a well-rounded view of the process, allowing us to understand the concerns on both sides. With this insight, we are better prepared to help you make decisions that benefit your business and work toward a fair resolution.

The Bankruptcy Process in Arizona

The first step is a free, confidential meeting where we talk about your situation. During this discussion, we explain your options and answer any questions you may have. This meeting helps both of us get a clear picture of your case and decide what steps to take next.

Filing the Petition

Once you choose to move forward, we prepare all necessary documents and file the petition with the court. We handle all the details so you can be confident that the paperwork is complete and accurate.

The Meeting With Creditors

After filing, you will attend a meeting with your creditors, commonly known as a 341 meeting. We prepare you for this event by explaining what will happen and what you need to be ready for. Our goal is to make this process as smooth as possible.

Achieving a Discharge and Confirming a Reorganization Plan

For Chapter 11 cases, the court must confirm a plan that sets up a schedule for repaying your debts. The plan can also provide that certain debts will be discharged, which means that you are released from further obligations on those amounts.  We work with you at each stage until the process is complete.

FAQs About Small Business Bankruptcy

Q: Will filing for business bankruptcy affect my credit?

A: If your small business is operated as a separate business entity (e.g. a LLC), then bankruptcy will not affect your credit at all, because it is the business that files for bankruptcy, and not you individually..

Q: How long does the bankruptcy process take?

A: The length of the process can vary. A Chapter 7 case might be resolved in a few months, while a Chapter 11 case could take longer. We explain the expected timeline for your particular situation so you can plan accordingly.

Q: Can my business continue operating during bankruptcy?

A: Yes, in a Chapter 11 case your business can keep running while you set up a repayment plan. In a Chapter 7 case, however, the process generally means that the business will close.

Q: What happens at the creditors’ meeting?

A: At the meeting, also known as the 341 meeting, you will answer questions about your financial situation. We prepare you for this meeting so you feel comfortable and know what to expect.

Contact Us for a Consultation

If your business is facing financial challenges, please call us for a free, confidential consultation. We are here to help you review your options and plan the next steps. You can reach us by phone at (520) 745-4429 in Tucson or (480) 788-0098 in Mesa/Phoenix or by filling an online form. We proudly serve clients throughout Southern Arizona, including Pima, Maricopa, Pinal, Santa Cruz, Cochise, Graham, and Greenlee counties.

Take the first step toward a clearer financial future. We look forward to talking with you and helping you get through this difficult time.