Chapter 7 Bankruptcy for Small Businesses
If you are a small business owner struggling with debt, Chapter 7 bankruptcy may help. Chapter 7 bankruptcy can eliminate most or all of the debts for which you are personally liable. If you are a sole proprietor or your business is a general partnership, you are personally liable for your business's debts, and Chapter 7 may work well for you. If, on the other hand, your business is a separate legal entity, such as a corporation or LLC, you must file a bankruptcy on behalf of the business. While you may be able to use Chapter 7 in this situation, you'll need a lawyer to represent you.
If you are a struggling small business owner, filing for Chapter 7 bankruptcy may help save your business or provide a simple way to liquidate it.
Chapter 7 bankruptcy can help corporations and LLCs that are going out of business by providing an orderly business liquidation.
Find out whether Chapter 7 personal bankruptcy will wipe out your business debt.
Find out what will happen to your business in Chapter 7 bankruptcy. In some cases, you might be unable to continue operating your business when you file for Chapter 7 bankruptcy. There are some exceptions, however. Learn which type of businesses and business assets a bankruptcy trustee will likely sell in a Chapter 7 case.
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