Dallas Business bankruptcy lawyers discusses about debt relief options – 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 business bankruptcy lawyers Dallas 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 7 –
Chapter 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 13 –
Chapter 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