Are you a business owner burdened down by debt? Is your business no longer profitable because of an inability to pay back your creditors? Bankruptcy may be what you need to put your business and your life back on track. Three types of bankruptcies are available for business owners including chapter 7 bankruptcy, chapter 11 bankruptcy, and chapter 13 bankruptcy. You may want to consider a chapter 7 bankruptcy if your business has failed. If your business could still be profitable you may consider a chapter 13 bankruptcy or consulting with chapter 11 bankruptcy attorneys in Arnold.
In a chapter 7 bankruptcy, your business will close and assets will be sold by a trustee appointed by the court. The money gained from selling your business assets will go to your creditors and any remaining money will go back to you.
In a chapter 11 bankruptcy, your business can continue to function. You will continue to run your business; however, the court may appoint a trustee in case of dishonesty or incompetence. The trustee will be responsible for running your business during the bankruptcy proceedings, if one is appointed. During a chapter 11 bankruptcy, you will submit a plan to the court for reorganizing your business. Your plan may involve selling some assets, reducing expenses, or other negotiations to allow you to pay your business debts. While your business is under bankruptcy proceedings, the court must approve of major business decisions that change business operations, such as a change in a lease agreement. A chapter 11 bankruptcy gives your business a chance to become profitable and healthy again.
If you are a sole proprietor, a chapter 13 bankruptcy is also an option. A chapter 13 bankruptcy is similar to a chapter 11 bankruptcy in that you will continue to operate your business while it is reorganized in an attempt to pay debts and become profitable. Unlike a chapter 11 bankruptcy, a chapter 13 bankruptcy has limits on who can file (corporations and partnerships are restricted) and debt amounts.
If you want to save your business but it is overwhelmed by debt, schedule a consultation with chapter 11 bankruptcy attorneys in Arnold at Stlbankruptcyfirm.com.
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