Small business owners can benefit from
bankruptcy in a number of ways. Aside from using this powerful financial tool to
help eliminate business debt, you can get legal assistance in restructuring
or reorganizing your financial obligations. This may help you gain more
control over business finances while remaining in business. There are
a few aspects to think about when considering bankruptcy as a solution
in handling small business finances.
Bankruptcy can help your business in multiple ways.
Chapter 7 bankruptcy may help you eliminate personal debt obligations while protecting business
assets for sole proprietors.
Chapter 13 bankruptcy may help you restructure business debt obligations into an affordable
repayment schedule. With Chapter 13, sole proprietors can enter both business
and personal debts. The same is true for Chapter 7 small business filers.
Chapter 13 gives you protection while making scheduled payments. Your business
assets remain protected while you make payments and keep business running
as usual. If your business is a partnership, LLC, or corporation, you
may benefit from a Chapter 11 bankruptcy filing. Chapter 7 can also liquidate
business assets should you decide to close or end operations.
Small business owners with personal and/or business debt obligations may
want to review their options in more detail with an experienced bankruptcy
expert in Dallas-Fort Worth. In many cases, you can protect business assets
while making affordable payments or eliminating qualifying debt. You should
also review exemptions available for business assets.
Reference:
https://www.nolo.com/legal-encyclopedia/bankruptcy-help-continue-business.html