When your business runs into financial problems, it can be a serious detriment to you and your family. When this happens, speak to a Terre Haute business bankruptcy attorney for guidance on what type of bankruptcy plan is right for you.
It’s an unfortunate truth that every single day businesses go under financially. Whether the market wasn’t right or there were internal issues with your business, you may be unable to make the profits necessary to keep things afloat and your company out of debt.
When this happens, bankruptcy may be the best way to escape debt, but what plan is best for you? Bankruptcy chapters and plans may make no sense to you at the time, but that’s what a Terre Haute business bankruptcy lawyer is for.
If you’re deep in debt from your business venture, call the Rowdy G. Williams Law Firm for help getting back on your feet. You can conquer your debt, and we can help you get there.
Chapter 7 Bankruptcy
The type of plan you choose will mainly depend on what method is best for your business. In some cases, you may need to just cover your debt and walk away. While you might lose many of your valuables, Chapter 7 plans can get you out of debt faster if your business failed.
Chapter 7 focuses on liquidating your assets. This means that your valuables will be exchanged for cash, which will be split between the debt collectors. This includes the following items:
- Extra vehicles
- Vacation homes
- Valuable collections
- Expensive items like musical instruments
While it can be painful to lose these items, a business bankruptcy plan will allow you to cover your debts quickly so that you can reset your finances and start fresh.
Chapter 11 Bankruptcy
On the other hand, what your business may need is a restructuring. A Chapter 11 plan is reserved for businesses that are struggling with debt but are unable to liquidate because their income is higher than the median income required by Chapter 7.
When you file for a Chapter 11 plan, you get the chance to restructure your debt to make it easier to pay off. This is geared toward businesses that are seeking profitability beyond their current financial issues.
In this case, the debts are spread out and classified by importance, scheduled to be paid off or covered within a three- to five-year span, giving your business time to make money and become profitable again. This process may require some extensive planning with a credit agency as well as the bankruptcy court, but having a business bankruptcy lawyer in Terre Haute guide you can help.
When considering Chapter 11 bankruptcy, be sure to speak with an attorney about your previous steps and your current finances. We can discuss your options and your plans going forward so that you can decide what options are best for you.
Talk to a Terre Haute Business Bankruptcy Lawyer
Getting over your debt is never easy, but it doesn’t have to be overwhelming. Whether you need a new start or a new plan of action, getting legal help will make a difference to your debt. If you’re not sure where to go with your debt, turn to an experienced bankruptcy attorney.
With as many types of bankruptcy as there are, it’s best to find a professional who can help you make the right decision. The financial wellbeing of your business and your family could depend on it.
We understand your priorities at the Rowdy G. Williams Law Firm, and we’ll make sure your needs are properly considered in your business bankruptcy plan.
If you have questions or if you’d like a free consultation with our Terre Haute business bankruptcy lawyers, give us a call at 1-812-232-7400 or complete our online form below.