Oklahoma Bankruptcy Lawyers Help Make the Decision
When you meet with an Oklahoma City bankruptcy lawyer, the first step that needs to be taken is to closely scrutinize the business’ finances. There could be no more crucial a decision that’s ever made regarding the ultimate survival of the business than how you proceed in this situation, so you owe it to yourself to leave no stone unturned. This is a thorough process but one that must be done before moving forward, as a mistake can lead to serious problems for the viability of your business.
When this process is complete, it’s time to make a decision regarding which type of commercial bankruptcy filing would be best for your company. While no two financial situations are ever exactly alike, there are some basic tenets that tend to be quite relevant regarding the decision on which chapter to use for protection, and these variables include:
- Cash flow
- Cash reserves
- Executory contracts
- Accounts receivable
- Accounts payable
- Overhead
- Long-term debt
- Unencumbered assets
Of course, there are many more, but this is generally where such a process begins. Generally, if a business has a positive cash flow and is generating regular revenue, moving towards a Chapter 11 filing could be the proper choice. However, if there is little cash flow and the assets are of little value, it may make the most sense to move towards a Chapter 7 filing.