How We Can Help you

Bankruptcy Blog

Library

What Happens to My Business Debt in a Missouri or Illinois Chapter 7 Bankruptcy?

When it comes to bankruptcy, your debt can be divided into two different categories. Some debt is dischargeable, meaning that it can be eliminated in your bankruptcy. While there is a specific list of debts that are included on the “dischargeable” list, you will find that it includes most, if not all, of their debts. Dischargeable debts include personal loans, credit card debt, medical bills, leases, and most income tax debts over three years old. A smaller list of debts is considered non-dischargeable, which means that they cannot be eliminated in bankruptcy. Non-dischargeable debts include student loans, alimony, child support, income tax debts less than three years old, and criminal fines.

If you are a small business owner who needs credit card debt help, needs to stop a wage garnishment, or have just gotten over your head in debt, you may be thinking about Missouri or Illinois Chapter 7 bankruptcy. And the first question on your mind is probably whether your business debt is considered dischargeable or non-dischargeable. To be eligible as a debtor, you must have primarily consumer debt. If, though, you are eligible, a chapter 7 bankruptcy discharges your personal obligation to pay the small business debt. Depending on how your business is structured, that may not mean that the debt disappears but it does mean that creditors can only recover the debt from the business, and not from you personally.

This is a great example of how important it is to have a qualified and experienced St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer. A small business can complicate a bankruptcy and, if your Missouri or Illinois bankruptcy attorney doesn’t have the right experience, it may be handled incorrectly. Small businesses are often the pride and joy of their owners and should be handled with care. Make sure you find an attorney that knows how important your small business is to you—and how you want it to be handled in your bankruptcy. If you want to keep your small business in bankruptcy, see my article on how Chapter 13 bankruptcy can help you keep it.

What else should you look for in the best attorney for your case? Request a free copy of my ultimate bankruptcy book, “Get Out of Debt,” to find out the other secrets to finding the best bankruptcy attorney in your area.

Got A Question?

News

FAQs