If you own a business and you are considering filing a bankruptcy case, it is important to obtain legal assistance to protect you and your company. Deciding which type of bankruptcy to file depends on how your business is set-up, the amount of assets it owns, and if you want to continue your business after the bankruptcy has concluded.
If you are a sole proprietor (your business is not legally incorporated), a Chapter 7 filing can be beneficial to eliminate both personal and business debts. You can also use exemptions to protect assets of the business. If you are a sole proprieter and you want to keep your business running, a Chapter 7 filing can be an attractive option. It should be noted, however, that if you or the business owns non-exempt property, the trustee may sell them to pay your debts. Thus, you should always confer with a Chapter 7 attorney to discuss your unique circumstances.
If your business is a corporation, limited liability company or other form of separate legal entity, you should not file a Chapter 7 if you want to keep the business running. When an incorporated business files a Chapter 7 case, there are no exemptions and the trustee sells the assets, pays the creditors, and the business closes. The advantage of liquidating your business through a Chapter 7 is that the trustee handles all the work for you.
Chapter 13 is only available to individuals. Thus, if your business is a corporation, LLC or other separate legal entity, it cannot file a Chapter 13 case. However, if you are a sole proprietor, both individual and business debts can be handled in your Chapter 13 plan. If your sole proprietorship owns several nonexempt assets, a Chapter 13 is a good option because you can keep the assets, reorganize your debts and keep your business running.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.