Forced Business Bankruptcy
Difficult economic times may create serious problems for business owners who often must take extreme measures to keep their companies afloat until business improves. In some cases, owners and managers may find it difficult to maintain regular payments to their creditors and may fall seriously behind on important payments. If a company’s creditors fear that the business will fail or lose all of it’s assets before they can recover their money, they may be able to force the company into bankruptcy to gain compensation.
Businesses that are forced into bankruptcy may be forced to liquidate their assets to repay loans and creditors. If you are a struggling business owner and are considering filing for bankruptcy, contact the Boca Raton bankruptcy lawyers of Eric N. Klein and Associates, P.A. at 561-353-2800.
Reasons for Involuntary Bankruptcy
Creditors may force a business into involuntary bankruptcy if:
- A company fails to make timely payments on a debt
- A business is delinquent on a very large payment
- If a custodian has been appointed or takes control of property within 120 days before the filing of a petition
- When creditors band together and file a petition for bankruptcy together
- If the creditors can prove that the business is habitually missing payments on its debt
If a business has less than twelve creditors, it may be possible for a single creditor to petition for involuntary bankruptcy. If the business has more than twelve creditors, the petition may require three or more of the companies to file against the business.
Contact Us
If you are facing serious financial troubles and would like more information on the bankruptcy process, contact the Boca Raton bankruptcy lawyers of Eric N. Klein and Associates, P.A. today at 561-353-2800.
