Centennial Small Business Debt Relief Attorney
Skilled Legal Advocacy in Aurora
Small business ownership can prove very rewarding but also very challenging. If you are struggling to manage exorbitant personal and business obligations, you may be able to address and eliminate some debts through Chapter 7 or Chapter 13 bankruptcy. You may also be able to leverage bankruptcy to efficiently wind down and dissolve a business venture that is no longer viable. The options available to you will depend on the structure of your business.
Our Centennial small business debt relief lawyer has worked on both sides of bankruptcy for over 15 years. We understand how to effectively move through the filing process and can leverage our knowledge to help you obtain the relief you need. We can review all available options and guide you through each step of the filing process.
“Norton Law will treat you with respect and advise on the best course of action.” - Larry L.
“I really appreciate the knowledge, professionalism, and sincerity of Norton Law. April and Dori have really helped make this experience of going through bankruptcy a lot more bearable.” - Shelly C.
“The entire process went smoothly thanks to April’s knowledge and professionalism.” - Jeni W.
Chapter 7 Bankruptcy for Small Businessowners
Both individuals and business entities can file for Chapter 7 bankruptcy. The filing process involves the liquidation of all nonexempt assets to partially repay creditors. Once the liquidation process has been completed, filers can typically discharge remaining unsecured debts.
Sole proprietorships can eliminate qualifying personal and business-related debts in a single filing. As a sole proprietor, you can exempt many types of personal and business property, including equity in your home, vehicles, and tools of your trade. This approach can be especially useful if your business is service-oriented, as you will likely have limited physical property. Chapter 7 may not be the best approach for small businesses with large amounts of equipment that cannot be exempted, as nonexempt assets will be liquidated as part of the process.
If your business is a limited liability company (LLC) or a corporation, you may be able to use Chapter 7 bankruptcy to quickly dissolve and shut down a nonviable enterprise. Filing for Chapter 7 bankruptcy signals the imminent closure of the business and allows you to access an efficient mechanism for selling the endeavor’s property and settling outstanding obligations.
Chapter 13 Bankruptcy for Small Businessowners
Business entities, including LLCs, corporations, and partnerships, are not eligible to file for Chapter 13 bankruptcy. Only individuals can file for this type of relief, meaning sole proprietorships can typically qualify.
Chapter 13 bankruptcy does not involve a mandatory liquidation process and instead focuses on a repayment plan. You will need to make a monthly payment tied to your current disposable income over a period of 3 to 5 years. This monthly payment will address all of your outstanding obligations, including personal and business debts.
Sole proprietors will generally be able to continue running their business while completing their repayment plan. Like with Chapter 7 bankruptcy, however, you will need to use exemptions to protect your personal and business property from being sold. You have the option of paying the fair value for nonexempt assets to avoid losing key items, but this can make the process more expensive and ultimately less useful.
If your business is an entity type that is ineligible for Chapter 13 bankruptcy, you still may benefit from filing as an individual. The Chapter 13 bankruptcy filing process can give you the time and flexibility to address personal debts, raise funds, and redirect resources to your business.
Our Centennial small business debt relief attorney can assist you with Chapter 7 and Chapter 13 bankruptcy filings. Whether you are looking to protect your business assets or need help dissolving a company, Norton Law, P.C. is committed to helping you achieve your objectives. We can determine whether your business may be eligible for relief and identify innovative solutions tailored to meet your needs.
A Supportive & Compassionate Approach to Bankruptcy
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