How Do I File For Bankruptcy as a Business Owner?

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When you file for bankruptcy as a business owner, it’s a little different than filing for bankruptcy as an individual. Some of your options are going to look quite similar though, and just like in cases of individual bankruptcy one of your choices might stand out as the best one. A Bergen County Chapter 13 bankruptcy lawyer is ready to advise you.

Can I File for Chapter 7 Bankruptcy as a Business Owner?

Yes, it is possible to file for Chapter 7 bankruptcy as a business owner. This is usually the best method to use after your business has closed. This liquidates assets and can be used to discharge business debts along with some personal debt.

Chapter 7 bankruptcy does offer exemption for some assets though. For example, it may be possible to keep your car or home. You can lose some valuable property though. This includes the business if there is still anything valuable about it, like its own collection of assets. Your bankruptcy trustee could easily find a buyer for it in a situation like that.

Can I File for Chapter 13 Bankruptcy as a Business Owner?

Chapter 13 is another potential option. In this type of bankruptcy, you must establish a payment plan for your creditors. If you meet your obligations and make every payment, the rest of your eligible debt will be discharged when your payment plan ends.

This method can also allow you to keep certain property, like equipment needed for your business. This can allow you to rebuild and make another attempt to grow your business. However, it’s important to note that this is only an option for a business owner who acts as a sole proprietor.

Is Chapter 11 Bankruptcy an Option For Me?

Chapter 11 bankruptcy can be an option if you have structured your business as a partnership or corporation. It allows you to keep operating your business while your debt is restructured. This method has some drawbacks though. It costs more and grants more powers to your creditors. A lawyer can help you figure out if this is a good option for you.

Do I Need a Lawyer?

You are not required to hire a bankruptcy attorney, but we really have to recommend it. The bankruptcy process can be quite complex and there is a lot of paperwork involved. Leaving out any of the required documents can cause delays or even legal troubles. An experienced attorney from our firm can guide you through this and help you figure out the best bankruptcy option for you.

Contact Our Law Firm and Schedule a Consultation

When you are ready to learn more about your bankruptcy options and how you can get a fresh financial start, contact the Law Office of Boyd & Squitieri. We can schedule a consultation and tell you more about which chapter of bankruptcy might be right for you and your company.