Will Bankruptcy Solve My Business Debt Problem?
A bankruptcy attorny in San Francisco addresses bankruptcy questions regard to solving your debt problem
Will Bankruptcy Solve My Business Debt Problem?
Can I file bankruptcy for my business?
Yes. The bankruptcy code allows for both individuals and businesses to file for bankruptcy. Businesses, however, are only allowed to file under either chapter 7 or chapter 11 to deal with business debt. If you operate as a sole proprietorship you will simply file as an individual instead of on behalf of the business.
What can filing for bankruptcy do for my business?
Business owners who are not personally liable for business debt can file in order to prevent creditors from filing lawsuits to recover business assets to repay business debt. In addition, business owners who file on behalf of their business can stop collection calls and other annoying contact from creditors. When a business files under chapter 7 it simply stops operating and goes out of business.
Does a business receive a bankruptcy discharge?
No. Businesses that file for bankruptcy to deal with business debt do not receive a discharge under the bankruptcy code. Rather, if in a chapter 7 proceeding, the corporation will simply die out and no longer exist. Whatever assets the business has are liquidated and repaid to creditors.
Should I file under chapter 7 or 11?
Although no simple answer can be given, generally those who want the business to reorganize and remain open will opt for a chapter 11 filing while those who do not care about the future of the business will file under chapter 7.
Am I personally liable for my business debts?
That depends on whether you personally guaranteed to repay the loans or subjected yourself to personal liability when obtaining credit cards. If the lines of credit, credit cards, or business loans are solely in the business’ name, then you are not personally liable for the business debt. However, if you are personally liable for the business debt, then it might make more sense to file bankruptcy individually rather than on behalf of the business.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
