Small Business Bankruptcy Attorney
If you own a business that is currently experiencing financial difficulty, you need to speak to an experienced small business bankruptcy attorney who can inform you of your options.
- After you file bankruptcy, it may be possible to continue to operate your business.
- Bankruptcy provides an orderly way of winding down a business.
- Bankruptcy may be a way to get out from under an oppressive lease.
- There is no prohibition from you starting a new business.
Since business bankruptcies are more complicated than personal bankruptcies, they require more time and planning to do them properly. Therefore, if your business is experiencing financial difficulties, the sooner you seek legal advice, the more your small business bankruptcy attorney can do for you.
If Your Business Is in Trouble, You Need an Exit Plan
There are many reasons that a business may fail, and most of them are beyond your control:
- The cost of goods or labor rising too fast for you to keep up with
- Competition from the “big box” stores that moves into the area
- A bad business decision
- Losing a lease
- Losing a key employee
- Distributor puts the squeeze on you or favoring your competitor
- Down turn in the economy
- Health problems that prevent you from taking care of your business
- General contractor refusing to pay subcontractors in a timely manner
If it is your intent to close a business for whatever reason and there is not enough money to pay all of the creditors, then you need an exit plan. A good exit plan takes some time to prepare. As in many things, timing may be one of the most important factors.
It is important that you choose a small business bankruptcy attorney as soon as possible to make sure that you receive the protection to which the law says that you are entitled.
Should You File for Chapter 7 or Chapter 13?
Deciding whether you should file Chapter 7 or Chapter 13 depends on several factors, including:
- The structure of your business
- How much debt you have
- How many assets you have (and how much they’re worth)
- Whether or not you want to continue the business
Chapter 7 allows both sole proprietors and partnerships, corporations, and limited liability companies to liquidate their debts. However, none of your assets will be protected by exemptions. Therefore, Chapter 7 is only a good idea if your business doesn’t have many assets, or you have no personal liability for the business debts.
Since only individuals can file a Chapter 13, you can only choose this chapter as a sole proprietor. This chapter allows you to protect your business assets, and you can keep the business going during the bankruptcy process. However, your debts are only discharged in a Chapter 13 after you completely finish your plan payments — whether that is three years or five years.
Speak to a Small Business Bankruptcy Attorney Today
Your small business bankruptcy attorney can help you determine which bankruptcy chapter is right for you. Diane Anderson specializes in business bankruptcy. Call the Law Offices of Diane Anderson today and set up an appointment.