Q: We are no longer able to fulfill our obligations under the Chapter 11 reorganization and need to shut down our business.
What are the appropriate steps? Can I do this without hiring a lawyer, as I cannot pay?
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A:
I'm sorry you're facing this situation. To begin shutting down your business under Chapter 11, you should first file a motion with the bankruptcy court to convert your case to a liquidation, typically Chapter 7. This involves submitting the necessary paperwork and providing detailed information about your assets and liabilities.
Next, notify all your creditors and stakeholders about the change in your business status. You'll need to liquidate your assets, settle outstanding debts as much as possible, and distribute any remaining funds according to bankruptcy laws. It's important to follow the court's guidelines carefully to ensure everything is handled correctly.
While it's possible to navigate this process on your own, it can be complex and time-consuming. Look for free legal resources or consult with a legal aid organization that may offer assistance at no cost. Ensuring you complete each step properly will help you close your business smoothly.
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