Q: I own a franchise, but I just had to file for bankruptcy. Am I still able to run my business?
A: Depends. If the business filed a reorganization bankruptcy you get a plan approved and then payoff the debts usually consolidated fashion and usually at a lower amount. In a liquidation all assets are sold and the creditors get paid usually a fraction of what they're owed. Even if you filed an individual bankruptcy it's likely that the franchisor in the agreement you signed with them contained a provision that allows them to revoke your franchise rights if you declared bankruptcy. There is a far more detailed analysis that's necessary to definitively answer your claims involving review of all of the agreements you entered into with the franchisor and the bankruptcy filing, schedules, and any orders. I'm happy to further assist, please feel free to email me at bjanay@lobej.com
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