Bankruptcy for Small Business Owners
Bankruptcy Attorney Filing Individual Business Bankruptcy Cases
Owning a small business can be a very rewarding endeavor. Unfortunately, financial risk is a constant when operating a small business, and many businesses are just a few bad breaks away from insolvency. When a business owner operates a sole proprietorship, the business's finances and the owner's finances are inherently intertwined. Even when an LLC or corporation has been formed, many owners will have shared property interests and loan guarantees on top of dependency for income, spreading financial distress from the company to the owner personally.
When the owner needs bankruptcy protection, filing chapter 7, chapter 13, or chapter 11 is an option. Chapter 7 becomes attractive when the business itself shutting down or has a low net value. If the chapter 13 debt limit is not an issue, chapter 13 can be a cost-effective way to reorganize the owner's finances. Other times, the added flexibility of chapter 11 will be worth the added cost and complexity. In any event, our firm is ready to assist individuals navigate the additionally complexity that owning a business creates in a bankruptcy case.