When you think of bankruptcy, you likely don’t think of commercial aviation as an industry that experiences it often. However, this type of industry isn’t immune to financial troubles and setbacks, and aviation law firms can be helpful in terms of filing Chapter 7 or Chapter 11 bankruptcy cases.
Aviation attorney Boca Raton Florida, can defend your rights and improve outcomes. However, before you decide to hire them, you need to read this article.
This Article Details thing You Should Know About The Relationship Between Aviation And Bankruptcy Law.
Aviation and Bankruptcy
Business bankruptcies are a fact of life in the airline industry. Airlines file for bankruptcy protection to re-organize their restructuring efforts and continue operating. A few airlines, such as Ravn Alaska, Miami Air, Island Air, filed for bankruptcies recently. Most airlines will continue to work while they are filing for bankruptcy. Some airlines even use Chapter 11 bankruptcy status to restructure labor agreements and reduce costs.
Aviation and Bankruptcy Law
Aviation law is the body of law that governs aviation activities. It is a highly specialized area of law. As such, it is the responsibility of those practicing in this area to stay abreast of developments in aviation to represent their clients effectively. Bankruptcy law, by contrast, provides for equitable distribution of a bankrupt entity’s assets among creditors.
Bankruptcy laws can vary significantly among countries, and the effect of bankruptcy also differs among legal jurisdictions. The most common forms of personal bankruptcy are Chapter 7 and Chapter 13. Aviation or bankruptcy lawyers in Maryland represent airlines, banks, aircraft manufacturers, airports, and other entities interested in this highly specialized area of law.
Before Filing, Consider All Options
The first thing you should know about aviation and bankruptcy law is that it’s possible, under certain circumstances, to re-organize a company without filing for bankruptcy. Before you take any actions, make sure that re-organization is a valid option for your specific business situation. If it isn’t, there are a few options for moving forward. A bankruptcy or aviation attorney in Boca Raton, Florida, can help you make the right choice.
Do You Want To Stay In Business?
One of your chief concerns is making sure you stay in business. And, naturally, you might assume bankruptcy would be something you’d never want to consider. But for some business owners, it can be a smart choice. If your financial situation is dire enough—that is, if your debts are high enough relative to your income, you may find yourself having no other good option but Chapter 7 (personal) or Chapter 11 (business) bankruptcy.
Secured Creditors Get Paid First Regardless Of Your Plan
Typically, secured creditors are paid in full regardless of whether or not your plan pays everyone else back. If you don’t have a plan, they might take everything. So even if you have a good credit score but have pledged assets (such as a car or boat) as collateral for a loan, you should either pay off that loan or file for bankruptcy before it is repossessed.
Otherwise, those assets will go directly to secure creditors without being subject to your proposed plan. A bankruptcy lawyer in Maryland can better guide you in such scenarios.
In The End
Whether you file under Chapter 7 or Chapter 13, you will need a good lawyer to help guide you through these trying times. If your creditors are becoming too much for you to handle, consider filing bankruptcy. Before making such a big decision, it may be wise to seek legal counsel first. Please don’t wait until it’s too late. Seek out professional advice as soon as possible.