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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Business Bankruptcy: Debt Relief Options for Small Businesses and Business Owners

Posted By Allmand Law Firm, PLLC || 18-Jan-2017

Owning and operating a business is no easy task – no matter the industry. In fact, statistics show that business owners in certain industries – such as restaurants – face incredibly tough odds when it comes to getting off the ground or achieving solid financial success. With the need for start-up capital, overhead expenses, advertising, and more, business owners often find themselves struggling to catch up with debt, stay afloat, and profit.

In light of the difficulties of owning a business, small business owners may also find themselves facing difficulties with their own personal finances. This is often the case with sole proprietorships or when personal assets are tied into business assets. Facing personal debt in addition to financial problems with a business can make a situation seem insurmountable. Fortunately – there are options for relief.

Because America values the hard work of business owners, the legal system recognizes their need for help when debt and financial problems become an issue. As such, business owners may have various options to find viable, working solutions to the issues they’re facing.

At Allmand Law Firm, PLLC, our bankruptcy lawyers have worked with many business owners across the Dallas – Fort Worth area and beyond when they were facing financial uncertainty. We work closely with business owners to identify strategic solutions that may be best for them. As many business owners put their own personal finances on the line to start-up or continue operations, we can also help with personal bankruptcy needs if necessary.

Debt Relief Options for Businesses

As with any case, the options you have available for debt relief will depend on the unique circumstances involved. This includes the type of business you have, the nature of the business’ financial problems, and the goals of business owners. Below are a few examples of how business owners may utilize bankruptcy.

  • Chapter 7Chapter 7 bankruptcy may be a solution for smaller businesses, including sole proprietorships. Typically, it means the business has no future and intends to liquidate without a plan to restructure. This may be an option for businesses with overwhelming debt loads or few assets, or when individuals operate a business simply as a small extension of their particular skillset.
  • Chapter 11 – Chapter 11 bankruptcy enables struggling businesses to reorganize and remain in business. It allows business operators to create plans for paying creditors over a certain period of time. Unfortunately, Chapter 11 bankruptcy can be complex and lengthy, and may not always be the best option for small business owners.
  • Chapter 13Chapter 13 bankruptcy, commonly referred to as reorganization bankruptcy, is a common form of personal bankruptcy. For small businesses, it can be a solid option for companies that wish to create repayment plans with the bankruptcy court for paying back at least a certain percentage of debt. It may also help business owners who have invested their personal funds in their venture. Unfortunately, corporations and businesses that are not sole proprietorships usually do not qualify. Learn more about Chapter 13 bankruptcy for small businesses on our previous blog.

Discuss Business Bankruptcy with a Dallas Bankruptcy Attorney

Running into financial problems can be frustrating and difficult, but there are options available for help. Our legal team is experienced in helping businesses owners take a close look at their finances – both with their company and personal needs in mind – and can help guide you on the best possible path given your unique situation and goals.

If you have questions regarding business bankruptcy and wish to speak with an attorney, our legal team is readily available to provide you with a FREE financial empowerment session. Our firm’s founder, Reed Allmand, is a Board Certified Bankruptcy Specialist by the Texas Board of Legal Specialization, and has the expertise needed to find the best possible solutions in even the most difficult cases.

Contact us today! We serve residents throughout the Dallas – Fort Worth area and beyond!

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