Business Bankruptcy

Consumer bankruptcy involves Chapter 7 and Chapter 13 of the bankruptcy code, and typically a business bankruptcy will involve Chapter 7 or Chapter 11 of the bankruptcy code. However, many small businesses and sole proprietorships may have Chapter 13 bankruptcy available to them. Depending on how you have your business set up and how you conduct your business transactions, you may be able to discharge your business debt in a consumer bankruptcy.

If you are a small business owner, you may want to factor in your business plans when deciding what type of bankruptcy to file. For example, a Chapter 7 bankruptcy may be a viable option for you if you want to discharge your debt without a repayment plan and gain a fresh start. However, if you plan on continuing your business, you may want to elect a Chapter 13 bankruptcy in order to maintain a relationship with your vendors and suppliers.

Also, depending on your situation and your business entity, you will need to determine whether you need a consumer bankruptcy, a business bankruptcy or both. The decisions regarding the type of bankruptcy you elect to file will depend on your situation and goals. An experienced bankruptcy lawyer can help you understand the benefits and limitations of your bankruptcy options so you can make an informed decision about how to proceed.

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