Records to Keep when Filing for Business Bankruptcy
Preparing a New York business for bankruptcy proceedings can be an overwhelming task. Aside from the stress of deciding to engage with the process, a business owner must also tackle the difficult job of getting all of her entity’s records in order. This blog post will touch on some of the types of documents and records a business owner should have available in the event the entity must enter bankruptcy, but it is not a comprehensive list. Readers are encouraged to discuss their businesses’ needs with their bankruptcy attorneys.
First, a business’s financial records should all be up to date and in order. Financial records can include balance sheets, earnings projections and profit/loss records. Financial records will generally provide a good picture of a company’s economic health and its need for bankruptcy protections.
Next, a business should have detailed records of its creditors, shareholders and employees. Names, addresses and other contact information for such parties should be maintained so that interested parties may be involved, if necessary, in the bankruptcy proceedings.
Third, a business should have comprehensive records of its assets. Such assets can include any real property that the business owns, any vehicles or pieces of equipment it possesses and other assets that may be sold if the business is seeking to file for Chapter 7 bankruptcy.
This post is provided to give readers a very basic starting point for understanding the types of records a business should have in the event it must pursue bankruptcy. As every business is different the records an individual entity will need to provide for its bankruptcy process may be different. Readers can consult with their attorneys to learn more about the specifics related to their own cases.