In this age where jobs are few and rare, many people turn entrepreneurs. However, starting your business is a risk. People often take loans to finance their dream. Many times, the lines between business finance and personal finance become hazy. In such a case, it is often difficult to separate the two. This becomes an issue if the business takes a downhill turn. According to Dallas based bankruptcy law firm Recovery Law Group, such an issue can be problematic at personal and business levels. Irrespective of the reason for your financial troubles, bankruptcy is always a viable option. Just like personal bankruptcy, business bankruptcy does not mean that everything is lost. You can continue operating throughout the bankruptcy proceedings.
If you wish to reduce the financial stress on your business and want to move ahead in life, the best logical option is filing for bankruptcy. You can move on to the next better idea once you have gotten rid of unnecessary dues holding you back. Consult with bankruptcy lawyers at 888-297-6023 to find out which chapter of bankruptcy would suit your case. Business bankruptcy can be filed under three chapters depending on your unique circumstances.
- Chapter 7–Corporations, partnerships, LLCs, and sole proprietors have the option of filing for bankruptcy under this chapter. People and business organizations who wish to get rid of their debts can opt to liquidate their non-exempt property to pay their creditors. State and federal exemptions can be used to protect business and personal property during the bankruptcy process.
- Chapter 11 – This option is available for publicly traded and large-scale business organizations. In this case, banks and creditors prefer to cut the loss as the time taken in the reorganization is too much.
- Chapter 13 – If you wish to continue operating your business while going through bankruptcy to get debts discharged, this is the best bet. This chapter of bankruptcy allows you to create a payment plan through the court where you can repay your creditors over a period. With Chapter 13 bankruptcy , you can also protect all your assets while getting rid of personal liability entirely.
Though people can file for bankruptcy without a lawyer, business bankruptcy cases can be quite typical. It is therefore recommended that you choose an experienced bankruptcy attorney to handle your case efficiently.