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Keeping a Small Business in Bankruptcy

Small businesses are at the root of our economy. Entrepreneurship is admirable and can be very profitable—but, if you’ve run into debt trying to get started (or even keep afloat!), there is still help available for you. Many people are under the impression that if you own small business, you cannot file bankruptcy and still be able to keep it. Luckily, that just isn’t true.

A chapter 13 bankruptcy allows a debtor to keep property, like a small business. A chapter 13 is for people who have primarily consumer debt, which is your personal debt, but it also allows you to include any business debt that you may have guaranteed. Through filing Chapter 13 bankruptcy, a payment plan can be worked out between you and your creditors that is affordable and still lets you keep your business. Plus, your creditors cannot try to collect the debt from you throughout the life of your bankruptcy because you will be protected by the bankruptcy code’s automatic stay. So, not only can you keep your business, but you can live a life free of the stress of harassing calls, wage garnishments, and possible repossessions.

There is a lot of pride and passion that goes along with running a small business. The idea of starting a business is at the very core of the American Dream. Bankruptcy can help keep you on the path to achieving your dreams by helping you get a handle on your debt. If you are in debt you can no longer handle due to your small business, don’t give up just yet. Come in and talk to us about how bankruptcy can help your specific situation.

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