Can a Business File for Bankruptcy?
A business can be an exciting, profitable venture that may let you be your own boss. Unfortunately, businesses aren’t always successful. While you might expect some times of high expenses and low profits, you’re now struggling to keep your business afloat. You’ll need to shut it down or make big changes to your business before you’re able to recover.
Unfortunately, that means you’re asking, “Can a business file for bankruptcy?” While the answer is yes, you’ll need to look at your options, which might be confusing on your own. Fortunately, that’s what a bankruptcy lawyer from Rowdy G. Williams Law Firm is for. You’ll need someone who can review your claim and show you what options you have when your business is bankrupt.
Bankruptcy Options for Sole Proprietors
Sadly, you might have started a business and it failed, meaning that you lost both a professional opportunity and your personal finances. It’s unfortunate, but you will have options to recover from your losses.
Business owners who are also sole proprietors may also file for personal bankruptcy, which means that they may choose to start fresh through Chapter 7 bankruptcy. This type of bankruptcy gives you a chance to liquidate your assets and start over.
If you’re considering closing your business and finding new employment, this type of bankruptcy might be for you. You’ll liquidate expensive equipment or other assets, paying off your debts and starting over. For example, if your bakery doesn’t succeed, you might sell the industrial ovens and similar equipment you may have purchased for the venture.
Debt Reorganization for Your Business
In some cases, you might be more interested in saving your business and getting your business out of debt.
Fortunately, even if you’re not the sole owner of the business and can’t file for personal bankruptcy, you can still file for Chapter 11 bankruptcy. While Chapter 13 bankruptcy plans are more popular because of the lower risk involved, those in partnerships or corporations cannot file as an individual.
These plans are meant to be as fair to you as possible so that you have a chance to recover from your debts. However, many of these cases are dismissed and the related assets liquidated, so you’ll need to take care with your plan to repay your debts. Without a reasonable plan, you may have to choose liquidation over repayment.
Get Help Filing for Business Bankruptcy
Knowing that your business is in debt is a frustrating, disappointing situation. You want your venture to be successful, but sadly, you’re now asking, “Can a business file for bankruptcy?”
While a business can file for bankruptcy, you’ll need to be careful, especially if you file for Chapter 11 bankruptcy. These plans may fail and force you to liquidate your assets instead. That’s why you need a lawyer from Rowdy G. Williams Law Firm to guide you.
When you file for bankruptcy, you’ll need someone who can help you prepare a fair repayment plan and protect your business. If you’re preparing to file for bankruptcy but you’re not sure what’s best for your business, reach out to us. Give us a call at 1-812-232-7400 or fill out the online form below.
