Unfortunately, many small businesses have a great idea for a product or a service, yet the time they choose to launch just isn’t the right time. As a result, they end up with their finances in a mess. If you’re in a similar situation, the good news is, all hope is not lost for your business. As your Dayton Bankruptcy Lawyer we’re confident that we can offer you the guidance you need to determine which bankruptcy choice is right for you.
Many small businesses simply need some time to regroup and get back on their feet. However, if you think that your business has truly seen its last days, you might opt for liquidation or Chapter 7 bankruptcy. With this option, a trustee will be chosen to manage the sale of all of the assets from the business. The money from the sale will go toward any outstanding debt you have, and the remainder of the debts will be forgiven. Many business owners choose Chapter 7 because it wipes their slate clean and they are free to move on toward other ventures or career aspirations.
Reorganization, or Chapter 11 bankruptcy is a popular choice for many businesses. If you are confident that you can restructure your business so that it will be successful, this might be an option you would consider. Chapter 11 is more expensive than Chapter 7, and it requires oversight from a court-appointed trustee while you are restructuring. However, it also provides you with the opportunity to make the adjustments you feel you need to make to turn your business around.
Repayment, or Chapter 13 bankruptcy is generally chosen if the business owner is the sole proprietor of the business. If this is the case, your business debts fall under your responsibility, as opposed to remaining the responsibility of the business entity. In this type of business ownership, you would formulate repayment agreements with each of your debtors to avoid losing some or all of your personal assets, such as your home and your automobiles.
A qualified Dayton Bankruptcy Lawyer can give you valuable insight as to which type of bankruptcy would work for your business. Losing a business is difficult, however, it’s important to get the best legal advice available in order to save yourself time and money. If your business is facing bankruptcy, we can help. For more information, contact us today.