What Are Some Signs That My Small Business Should Consider Filing For Bankruptcy?
Business owners should consult an attorney at filing for bankruptcy when the expenses are greater than the income and it doesn’t appear that all debts will be able to be paid.
Can Any Type Of Company File A Business Bankruptcy?
All except sole proprietorships. Soles proprietorships are considered one entity with the owner without any need for a legal filing for the business to exist.
What Type (s) Of Bankruptcy Are Possible To File For A Small Business? What Are The Differences?
Chapter 7 and Chapter 11. The main difference is Chapter 7 is used to close a business and Chapter 11 is primarily used to reorganize the business and continue to operate.
What Happens To Personal Assets And Debts In Small Business Bankruptcy?
Businesses are separate legal entities. Unless the personal assets were used as collateral to obtain a business loan or involved in business related fraud, personal assets are protected.
What Is An Automatic Stay In A Small Business Bankruptcy?
An automatic stay stops legal proceedings and harassment associated with the business debts. It’s the protection received by entering into the bankruptcy.
What Is Generally The Outcome Of A Successful Small Business Bankruptcy?
In Chapter 7, the business is closed and creditors are on notice that the business is not operational. In Chapter 11, the business continues to operate with restructured debt.
Will I Be Able To Operate Business As Usual During A Small Business Bankruptcy?
The business will continue to operate under the guidelines in the restructuring plan. There are restrictions and rules to follow but it is usually the only way to save a struggling business.
Will I Lose My Business If I Have To File A Small Business Bankruptcy?
Not necessarily. Many factors go into determining that. If you restructure to save your business but revenue continues to decline or remains insufficient to operate successfully, the outcome would be closure. The plan is to restructure in a way to avoid that.
Will I Ever Be Able To Get Financing To Support My Business Again If I File A Business Bankruptcy?
Sure. Restructuring is better than complete closure. In order to successfully operate, many business use lines of credit or other debt.
What Is The Process To File A Small Business Bankruptcy?
It is an intense process that takes months to put together. I thorough review of assets, liabilities, accounts receivable, revenue, transactions, etc. is necessary to begin. Then filing of the case, reaching an agreement with creditors, appearing for a hearing, etc. occur. When your business is struggling to survive, drastic measures are needed. You must be all in to be successful.
How Long Will The Process Take To File And Complete A Small Business Bankruptcy?
Each business varies, but filing usually takes many months or even a year plus. The reorganization itself generally lasts for years.
For more information on Small Business Bankruptcy In Ohio, a free Initial Consultation is your next best step. Get the information and legal answers you are seeking by calling (937) 247-6447 today.