Business Bankruptcy Cases
Recent downturns in the U.S. economy mean that more and more small businesses are experiencing big losses. There will likely be an increase in business bankruptcy filings in the coming months as a 2020 recession becomes a reality. Attorneys can help keep their practice afloat and reach more clients in need by adding bankruptcy law to their law firm.
Here are the basics of business bankruptcy cases and how NextChapter helps you streamline the filing process.
There are two types of business bankruptcy cases that you’ll handle for your clients: Chapter 7 and Chapter 11.
Chapter 7 cases
Chapter 7 business bankruptcies are when businesses liquidate their assets to pay off their debts. Under this chapter, the business doesn’t need to create a repayment plan since their property will cover their remaining debt. This option is beneficial for organizations that are past the point of being able to restructure, and it allows them to pay off their debts right away and start fresh.
Chapter 11 cases
A chapter 11 business bankruptcy case is the reorganization option. This allows businesses to restructure their debts so that payments are more manageable and can be paid off over time. These cases are generally filed by larger businesses. This plan helps businesses continue operating while they also repay burdensome debt.
How NextChapter helps attorneys file business bankruptcies
NextChapter makes the process simple. We’ve recently added new enhancements and features that make business bankruptcy filings even easier to manage. These features are especially helpful as you add bankruptcy to your practice.
Attachments made simple
NextChapter offers an attachment feature so that you can attach itemized lists to Schedules A/B, D, E/F and SOFA. This helps you avoid having to re-type long itemized lists into the platform. All you have to do is check a box and the platform will automatically attach them to the corresponding document. This improves accuracy and streamlines the process.
Save multiple creditors to multiple assets
One new feature within NextChapter is the ability to save multiple creditors to multiple assets in your business cases. This eliminates double data entry and saves you time.
Using client prefixes
To save even more time, add client prefixes to business cases in the Filing Information section in NextChapter. You can then reference cases and clients that are jointly administered by filtering by Client Prefix when searching through cases.
Profit and loss statements
NextChapter automatically generates P&L statements, and all you have to do is enter your client’s income and expenses. The documents can be updated or adjusted anytime.
Sole proprietor business management
With NextChapter, your sole proprietor business cases can now be automatically saved to the business related section, so you only have to enter data once in the Debtor Profile section of the application.
NextChapter is a cloud-based business bankruptcy software that saves you time and helps guide you through the preparing and filing. Learn more by contacting the team today and start filing business bankruptcy cases!