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Business Bankruptcy Caroltown TX
There are three types of bankruptcy proceedings for a small business. The structure of a business determines how the owner will file their case. Among small business bankruptcy cases, most will file under Chapter 11. But for sole proprietors, business bankruptcy Chapter 7 and business bankruptcy Chapter 13 are also options. The business bankruptcy attorneys at Littlefield Law Firm will guide you through each step in the process, including which chapter to file for the best financial result.
Small Business Bankruptcy
For some business owners, the venture was their first attempt at entrepreneurship. For others, it was part an industry that has fallen by the wayside. In all cases of bankruptcy, there is a series of tough questions and even tougher answers. That’s what we are here for. Littlefield Law Firm has experience with transitioning a business owner from debt-burdened to financially stable. Small business bankruptcy is a process in federal court designed to help a person elimate or repay their debt stemming from their organization. As a result, this repayment takes place under the protection of the bankruptcy court.
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Chapter 7 vs Chapter 13
Business Bankruptcy Chapter 7
Under a Chapter 7 business bankruptcy, the trustee must liquidate assets to pay off as much of the debt as possible. The trustee takes possession of the business’s assets and distributes them to the creditors. After the trustee distributes the assets and you pay them, you as the sole proprietor receive a “discharge” from the court. This marks the end of the bankruptcy case.
While the Chapter 7 option is available to many proprietors, it is important to remember that it hinges on liquidation of assets. That means that any associated property and assets of the business are subject to transfer by a trustee to creditors as a means of settling debt. As a result, this may not be the best option for owners with a steady income.
Business Bankruptcy Chapter 13
Typically Chapter 13 business bankruptcy is a reorganization of financial obligations for consumers. But sole proprietorships can also take advantage of this part of the law. Under Chapter 13, the sole proprietor can file a repayment plan with the court explaining how they will repay their debts. When you own a sole proprietorship, your assets are mixed with the business’s assets. As a result, filing Chapter 13 allows you to try to avoid losing your home or other major assets.
Business Bankruptcy Attorney
At Littlefield Law Firm, we represent clients in courts throughout the greater Dallas area. As business bankruptcy attorneys, we are familiar with the details of a system that people often find confusing. But when it comes to your financial well-being, we do more than that. Our team helps ensure that you get a fair shake. So from Chapter 7 business bankruptcy to Chapter 13 business bankruptcy, and everything other filing, we are committed to getting the best possible result for you.
Whether you are closing a beloved business after many years or recognizing hardships as a young entrepreneur, you can trust Littlefield Law Firm to guide you through a tough time. That’s part of what makes us so well liked among business owners. So call or email our firm today, and request a consultation.
Let Our Experience Be Your Guide.