If you’re a business owner in the state of Indiana who’s trying to stay afloat or trying to close your business as fast and painlessly as possible, filing for bankruptcy might be a smart route to take. Depending on the size of your business and the situation you’re in, the type of bankruptcy you file will vary.
Having an attorney who understands the various chapters of bankruptcy and how they apply to your business can be crucial. At Rowdy G. Williams Law Firm, our team is familiar with both Chapter 7 and Chapter 13 bankruptcy. A Terre Haute bankruptcy lawyer can assess your financial situation as a business owner and steer you in the right direction.
Chapter 7 Bankruptcy for Business Owners
If you’re trying to close your business, Chapter 7 bankruptcy may be a viable option. When your business doesn’t have enough money coming in for you to set up a repayment plan, Chapter 7 can help wash out any debt that you owe as a company.
If your company is a sole proprietorship, Chapter 7 will allow both your business and personal debts to be discharged. All of your assets will become part of the bankruptcy estate. If you don’t have much property, this can be a good option for you. If you have a large estate, however, you may want to reconsider this option because you’ll likely lose a large portion of it.
Partnerships and corporations who file for Chapter 7 bankruptcy should be aware of the pros and cons associated with taking this route. Although Chapter 7 bankruptcy will streamline the process of closing a business because it shifts the responsibility of liquidating assets to the bankruptcy trustee, it’s important to note that Chapter 7 doesn’t get rid of partnership debt.
Partners who file for Chapter 7 bankruptcy will still be responsible for the bills of the business. Also, corporations who file bankruptcy may be at risk for lawsuits by creditors who are seeking payment because, though Chapter 7 absolves individual liability, it may not absolve shared liability.
Chapter 13 for Business Owners
Chapter 13 bankruptcy can be a great option for business owners who are trying to remain in operation. This route, however, will require you to have enough income to set up a repayment plan.
If you don’t qualify for Chapter 7, want to keep more of your property, or plan on keeping your business open, then Chapter 13 bankruptcy can be a good idea. Chapter 13 is only available for sole proprietors.
Consult a Terre Haute Bankruptcy Attorney
Businesses have a complex structure and their financial situations can be confusing. Filing for bankruptcy is an important decision and it’s crucial to ensure you take the proper route. Having an experienced attorney by your side to explain each detail of the process may make you feel more at ease as you begin assessing your options.
To speak to a Terre Haute bankruptcy lawyer from Rowdy G. Williams Law Firm about your case in greater detail, call 1-812-232-7400 or fill out the contact form to schedule a no-obligation consultation.