An accomplished attorney, Michael Guyerson holds an AV rating by Martindale Hubble, in addition to certification as a business and bankruptcy specialist by the American Bankruptcy Institute. Since 2016, Michael Guyerson has served as senior counsel at the Buechler Law Office in Denver, Colorado, where he manages the firm's civil litigation and commercial bankruptcy lines of business.
Business or commercial bankruptcy refers to a legal proceeding that takes place when a company can no longer repay its debts. The exact process, which takes place in a federal court, depends on how a business is legally structured.
Sole proprietorship bankruptcies typically occur as a Chapter 13 reorganization filing, since these businesses are legal extensions of the individual owner. Chapter 13 filings are usually reserved for individuals, and the “chapter” refers to the section of the United States Bankruptcy Code that governs the process.
Legal business entities, such as corporations and partnerships, typically file for bankruptcy under Chapter 7 or Chapter 11. Chapter 7 bankruptcies, or liquidations, are used when a business lacks a viable future. Alternatively, a Chapter 11 filing may be used when there is hope to improve the company’s financial position. A Chapter 11 filing involves a planned business re-organization monitored by a court-appointed trustee.
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