Not just individuals, but small business owners can also face issues when it comes to handling finances. In case there are financial issues plaguing a business which cannot be managed easily, the owner might have to take the hardest decision ever; filing for bankruptcy to get relief from debt. If you are left with no other option except filing for bankruptcy, it is important that you hire the services of experienced lawyers to handle your case. You can seek consultation with bankruptcy attorneys by calling 888-297-6023.
Lawyers of Dallas based bankruptcy law firm Recovery Law Group, elaborate that there are a number of bankruptcy chapters under which small business owners can file for bankruptcy. The bankruptcy criteria differ in all three – Chapter 7, Chapter 11 and Chapter 13. While Chapter 7 is the most common one for small businesses, the requirement for qualification is stringent in this case. Any non-exempt property is sold off to pay creditors and the remaining dues are discharged after bankruptcy.
Chapter 11 bankruptcy works by re-organisation of debts in such a manner that you do not have to shut down your business. This bankruptcy is best used for small corporations, partnerships and even for sole proprietors of business. Though Chapter 13 bankruptcy Dallas relief is for individuals it can also be used by sole proprietors to get debt relief. Chapter 12 bankruptcy is available for families of farmers and fishermen to get rid of excessive amount of debt.