Bankruptcy is a reasonable option for small, unincorporated businesses that are facing financial problems. A bankruptcy lawyer in Surprise should be your first contact if you are considering filing for bankruptcy for your small business. An experienced attorney can explain chapter 13 and chapter 7 bankruptcy rules, and explain a chapter 13 repayment plan to you.
Chapter 7 Bankruptcy Rules for Businesses
You may have heard about small businesses being liquidated — this is the same thing as a chapter 7 bankruptcy. Under chapter 7 bankruptcy rules, a small unincorporated business can be a partnership, corporation, or other business entity. This option is appropriate for a business that is completely folding.
The rules specify that the business’s assets will be liquidated to pay off debts and that if you have any personal business debts, you will still be required to pay them. You may need to also file for personal bankruptcy if you cannot afford to do so.
Chapter 7 bankruptcy rules can be complex and there are certain rules specific to Arizona, so it is a good idea to consult with a bankruptcy lawyer in Surprise or your local area to ensure you have met all of the requirements.
A Chapter 13 Repayment Plan for Your Small Business
In order to file for chapter 13 bankruptcy, you must develop a chapter 13 repayment plan for your small business. The bankruptcy court will determine whether or not you can pay a certain amount each month towards all of your debts. This is best done with the help of an experienced bankruptcy lawyer who has done this many times before.
A repayment plan can also be used for sole proprietorships. It allows you to keep your assets, so if your personal finances are connected to business assets, a chapter 13 repayment plan can help you keep your property.
Contact a Bankruptcy Lawyer in Surprise for Local Knowledge
If you file for bankruptcy for your small business, you will be dealing with bankruptcy court. It is important to have a lawyer who knows what they are doing, and has local knowledge.
In Arizona, some property can be exempted from chapter 7 bankruptcy filings, based on state legislation. This includes some bank deposits, benefits, and items of personal property.
Arizona businesses will benefit from connecting with a local bankruptcy lawyer in Surprise, who will know about the court system, Arizona state exemptions, and other locally specific information.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.