Involuntary Bankruptcy for Dead-Beat Businesses

At Hammerhead Debt, we utilize many unique tools as part of our hammerhead attack recovery process. One of the most unique is a rarely used provision in the Federal Bankruptcy code: Involuntary Bankruptcy. The Involuntary Bankruptcy provision is located at 11 U.S.C., Section 303 of the Federal Bankruptcy Code. If you would like to read some of the actual law regarding the Involuntary Bankruptcy provision, please visit the Federal Courts website at http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx, then do a search for “Section 303.”

As discussed on our hammerhead attack website page, filing Involuntary Bankruptcy is very expensive. The court costs by themselves are reasonable; however, the attorney’s fees are what become unreasonable. A typical business bankruptcy filing will cost anywhere from $13,000 to $50,000, and which end of the range you fall in is usually dependent on two things: the size of the city your business is located in, and the competing bill rates amongst the larger law firms in town.

Part of our hammerhead attack process is our ability to attack the status quo of traditional business processes from a different angle. In this instance, we utilize assets provided to us by our parent corporation. Our parent corporation, Z-Acquisition Group, specializes in corporate turnarounds in the Mergers & Acquisitions industry. They provide us access to their national low cost business bankruptcy attorney network at no charge. The low cost business bankruptcy attorney networks give us access to business bankruptcy attorneys in every state, at 1/6 to 1/8 the typical business bankruptcy attorney billing rate. And so, where filing involuntary bankruptcy proceedings against a deadbeat business is not tenable for a typical commercial collection agency, it is a very viable hammer for us.

If you have questions about our program, or you would like to receive a proposal of our rates, please click here (Hammerhead Rates – Hammerhead Debt) to go to our Contact Us page.