Tips on How to File Bankruptcy for a Small Business – Sky Business News

Small-scale business owners might be wondering how bankruptcy filings can allow them to continue operating their businesses. While filing bankruptcy may help with business continuity, the overall success of a company depends on how they formed it, whether the plan is to continue the company running, as well as the debts and assets they are able to hold.
Both individuals and companies can apply to file chapter 7 bankruptcy. Still, a small company owner may rely on chapter 7 bankruptcy for declaring bankruptcy without the need for a lawyer. Chapter 7 bankruptcy will resolve both business and personal debts for sole proprietors.
Even though it is true that filing Chapter 7 bankruptcy does not erase the debtor’s debt, many entrepreneurs can file an individual bankruptcy upon the closure of their business. They can erase their debt to pay a business debt or personal guarantee.
People can file Chapter 13 bankruptcy. But businesses such as LLCs, corporations and partnerships are not allowed to make bankruptcy filings. But sole proprietors are able to get an attorney to review the bankruptcy papers and aid them in arrange their personal and professional financial obligations. An attorney can assist the sole proprietor understand what bankruptcy is and suggest other alternatives to help keep their business in business. 2of18vpmmd.