When a business is struggling, sometimes the best solution is to file bankruptcy. For many small business owners, Chapter 7 bankruptcy gives them an opportunity to walk away without taking on any personal liability.
Chapter 7 Bankruptcy for Small Business
Chapter 7 is often the best option for small business owners who are unable to restructure their debts and continue operating. When you file Chapter 7 bankruptcy, a bankruptcy trustee will be assigned to you, and any nonexempt property and assets will be sold. Creditors will be paid by the trustee with the proceeds from selling assets.
Limited liability companies, corporations, and partnerships are all eligible to file Chapter 7 bankruptcy. Individual owners who run their business as a sole proprietorship may also be eligible depending on their income.
Do I Need a Bankruptcy Attorney?
Without the help of a qualified attorney, the dissolution of your business could be handled poorly, which could leave you liable for your business’ debts even after bankruptcy. Many small business owners take out personal loans and put up personal assets as collateral, such as a home, in order to start up or save a business. That collateral could be in jeopardy if any mistakes are made or details missed.
The Manalapan business bankruptcy lawyers with Garland & Mason LLC have helped numerous business owners navigate through business bankruptcy and come out on top.