If you are a small business owner, and your business is struggling, you can feel the effect in your personal finances and your personal life as well. Bankruptcy can provide some relief, but you may be uncertain whether you should consider a personal bankruptcy petition or a business/commercial bankruptcy filing. This blog post addresses some of the differences between personal and commercial bankruptcy filings.
At the office of bankruptcy attorney Carrie Weir, in Rockwall, Texas, I provide a free initial consultation to individuals and business owners considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.
Assessing the Future of Your Business
Before you determine whether to file for personal or business bankruptcy, you need to take a close look at the long term prospects for your business. Do you have a strong market, but need temporary relief to get on the right track? Or are you really trying to keep a dying business afloat.
In a business bankruptcy filing, you can choose to file either a Chapter 7 liquidation or a Chapter 11 reorganization. If your business has little or no future, you are better off selling the assets of the business and discharging your debts under Chapter 7, and being done with the business. Unlike personal bankruptcy, where you must qualify to discharge debts in Chapter 7, you can file a Chapter 7 bankruptcy for a business at any time.
If, however, you believe that your business has a future, a Chapter 11 filing will allow you to enter into new payment arrangements with all your creditors. A key component of a Chapter 11 petition, though, is that your creditors must approve the reorganization plan.
In a personal bankruptcy filing, you also have the choice of a Chapter 7 or Chapter 13, but must submit to a “means test” to determine whether you are eligible to permanently discharge debts under Chapter 7.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.
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