How Can Chapter 7 Bankruptcy Work for Small Business Owners?
When a small business owner faces financial problems because of personal or business debts, they may want to consider bankruptcy as an option for returning to financial freedom. Unfortunately, depending on the size of the business, a small business owner may have to claim these debts as their own financial responsibility. In these situations, debtors can face strict penalties from creditors for being in charge of a failing business.
If you’re thinking about bankruptcy as an option to help with your small business debts, you may want to learn more about what the process entails. For additional information, contact the Joliet Chapter 7 bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., today by calling 815-722-2201.
How Chapter 7 Bankruptcy Helps a Business Owner
Larger businesses may need to file for bankruptcy protection under a different set of rules than small businesses. This is because small businesses are commonly owned by a single person or by a partnership. This type of ownership means that any business expenses are commonly tied to a single owner. When that person faces financial hardship, they may want to consider bankruptcy.
Small business bankruptcy can help a business owner in the following ways:
- Cut financial ties between a business owner and the business
- Allow the business owner to handle overwhelming personal debts
- Resolve serious financial issues without necessarily ruining the business
In some cases, the court will allow a business to stay open after bankruptcy, giving the small business owner the opportunity to re-establish themselves financially. However, for business owners particularly concerned about losing their business, Chapter 7 bankruptcy may not be the right approach.
If your debt has grown to uncontrollable levels, it may be time to think about bankruptcy as a serious option to save your business and yourself. For a free consultation, contact the Joliet Chapter 7 bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., today at 815-722-2201.