Do I have to file an Individual & an Arizona Business Bankruptcy?
It is important to remember that no person has the exact same situation, which can cause differences for each individual case and it is extremely important to consult an expert when you are making any decisions about your bankruptcy. Many times, although it may seem that there is only one way of doing this, an experienced attorney can offer some alternative options.
This is a question which cannot be fully answered before knowing more about your specific situation. But I can stay that it depends on how you have your business set up and whether you debts are primarily personal or mostly business debts. Some very common and normal Arizona bankruptcy questions are located here.
Most of our clients are sole proprietors. They means they just run a business and have not gone through the formal steps with the state to set up a partnership, LLC or corporation. For many small business owners, this works out well and there is no need to have a seperate corporation for the business. (This is a question that you and your CPA should answer in more depth). The real questions is whether you and the business are really the same entity. For example, do you have to file a separate tax return for your business or do you just report your business income or loss on your personal return? What we are trying to figure out is if YOU are bankrupt or if the BUSINESS is bankrupt (or both) and this is so we know what kind of bankruptcy we will need to file.
Personally, I have never seen a situation in our office where we have needed to file a petition for both a client personally and for their business separately. Usually, this can all be accomplished by one petition. That’s good news, right? No one wants to pay for two bankruptcies, especially at the same time!But if you have very complex business dealings and you are personally in financial trouble, let your Tucson Bankruptcy lawyer know this right away. Time is usually of the essence when we are talking about businesses and so the last thing you want to do is waste any. Just to recap, because this is very important: tell your lawyer IMMEDIATELY if you own a business and as much as you can about the business. This conversation will help put you on the right path from the get-go with your bankruptcy.
