Can I Keep My Business If I File For Bankruptcy?
When you are a business owner facing a mountain of debt and you have no other option but filing for bankruptcy, you may be afraid that you will lose your business. However, there are some options under bankruptcy law that allow debtors to keep their businesses even after filing for and completing a bankruptcy plan. If you are considering bankruptcy but want to keep your business, Chapter 13 or Chapter 11 may be your best options. Chapter 13 is a reorganization plan which allows you to take your personal and business debts and repay at least a portion of them through a court-approved plan. As long as you make the payments under your Chapter 13 plan, you will have options that may include keeping your business. Chapter 7 is an option that is not typically used by those who want to keep their business. This is because Chapter 7 allows you to discharge your debt without paying it back. Instead, your assets are usually sold off in an attempt to pay a portion of your debt. This means that those who file for Chapter 7 may not be able to operate their businesses afterwards. However, there are other circumstances in which debtors can use Chapter 7 to discharge debt but still keep some assets. A bankruptcy attorney can help you decide which option is right for you.
How Do I File for Chapter 13 Bankruptcy?
To qualify for Chapter 13, you must be an individual. That means that if you operate your business as a sole proprietorship, you would simply include it in your personal Chapter 13 filing. This option would not work for legally separate entities like corporations or limited liability companies, which must go through a different bankruptcy process. To begin the bankruptcy process, it is best to speak with a bankruptcy attorney like those at the Oswalt Law Group in Phoenix. The experienced bankruptcy attorneys at the Oswalt Law Group have the skill and resources you need to determine the best debt solutions for you. We can evaluate your individual situation and offer sound legal advice on the best steps toward a debt-free future. If filing for bankruptcy is the best option, we can help you through each step of the process. The bankruptcy process begins by filing a petition with the bankruptcy court. When you file for Chapter 13 bankruptcy, you will receive an automatic stay on all debt collection activities. This means that collectors can no longer call and harass you for payment. When facing bankruptcy, you will likely feel stressed and overwhelmed. You need an experienced bankruptcy attorney on your side. Call the team at the Oswalt Law Group today for help.