Only individuals are allowed to file for Chapter 13 bankruptcy. Business entities such as partnerships, corporations, or LLCs cannot file. However, similar to Chapter 7, if you are a sole proprietor you can file a personal Chapter 13 to wipe out your personal and business debts.
Chapter 7 And 13 Bankruptcy Options For Businesses
When you think about business bankruptcy, you probably think Chapter 11. If your business is a sole proprietorship, there is no difference between the personal and the corporate filing — you are your company and its financial state is your financial state.
At Hedtke Law Firm, we stand ready to advise you on making the right choice for you and your company. The process of commercial bankruptcy involves a lot of ongoing contact between the attorney and the business owner.
Helping You Get Your Finances Back On Track After Closing Your Business
The decision to close your business is not easy, but in the end, it may be the best way to put an end to the harassment of corporate creditors and help you move forward. Our firm will help you obtain the tools you need to get back on your feet and prepare for the future following a business closing.
Options For Small Businesses That Want To Remain Open
If your business has the potential of being profitable, it may be possible to use bankruptcy to get a fresh start. Small businesses can resolve their debt and reorganize following a Chapter 7 bankruptcy. For many small businesses, this is preferable to a Chapter 11 reorganization, because Chapter 11 bankruptcies are very costly and require a significant amount of trustee involvement.
To find out your options for preserving your small business through bankruptcy, please contact the Hedtke Law Firm at 909 736-3111 to schedule a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.