Top Bankruptcy Law Firm Ackerman Fox Reveal How to Protect a Struggling Business By Filing Chapter 11 – East Meadow, NY

Leading bankruptcy attorneys Neil Ackerman and Kamini Fox, partners at Ackerman Fox, LLP in East Meadow, NY, have just revealed how to have the best chance of saving a business by filing Chapter 11.

East Meadow, NY, United States - June 12, 2018 /MM-REB/ —

In a recent interview, leading bankruptcy attorneys Neil Ackerman and Kamini Fox, partners at Ackerman Fox, LLP in East Meadow, NY, were asked how someone with a struggling business can give get a second chance if they file for Chapter 11.

For more information please visit http://ackermanfox.com

When asked to elaborate, Fox said, "In certain cases, formally restructuring a business and its debts through r a Chapter 11 Bankruptcy can be the best and sometimes the only way to keep a business from closing its doors."

One of the most critical things offered by Chapter 11 is breathing space.

“Business owners often feel stifled and helpless with the threat of creditors, including the IRS or state tax agencies, seizing their assets or foreclosing on property they own. Once the business files into Chapter 11 Bankruptcy, an automatic stay shields businesses from these and other collection efforts,” Fox said.

This buys a business time to restructure its operation and debt, which is a significant benefit offered by Chapter 11.

When asked to comment further, Ackerman said, "This restructuring could take the form of reducing the number of staff in a company or making operational decisions that lower expenses and widen the profit margins."

“The ultimate goal of Chapter 11 is to propose a debt repayment plan that, if approved by the Bankruptcy Court, binds creditors to the plan’s terms, and shields the business from unexpected collection efforts," he said.

Chapter 11 also allows for businesses to restructure their pre-bankruptcy tax and mortgage debt.

When asked about the benefits of this, Ackerman commented, “Under Chapter 11, businesses can gradually pay back their tax debt through installments over a five-year period from the filing date of the Chapter 11 case.”

Ackerman added that certain types of mortgages and other secured debts could be restructured and interest rates lowered, and others could be wiped clear and made into unsecured debt.

“While filing for Chapter 11 could be the thing that saves your company from collapse, the process is complex as every business is different. If you think that filing for Chapter 11 is the best way to forward, we recommend consulting with an experienced Bankruptcy attorney,” Fox added.

Source: http://RecommendedExperts.biz

Contact Info:
Name: Neil Ackerman and Kamini Fox
Organization: Ackerman Fox, LLP
Address: 90 Merrick Ave #400, East Meadow, NY 11554, USA
Phone: 516-493-9920

For more information, please visit http://ackermanfox.com

Source: MM-REB

Release ID: 358486