If you own a business and you’re considering filing bankruptcy, there are many different variables that we have to consider. The first variable is are we going to file bankruptcy for the business itself; which, by the way, we don’t often do, it’s usually not the right course. We’re usually filing bankruptcy for you, the individual, not for the business, and inside the bankruptcy we’re dealing with the issue of your business.
If you have a business that’s failing and that can’t be saved, many times we will file a personal Chapter 7 bankruptcy for you and walk away from the business. That personal Chapter 7 bankruptcy will protect you from all of the debts that were incurred by the business.
If you have a business that is successful that you’re making a living off and that you want to keep, generally, if bankruptcy is right for you, we will file a personal Chapter 13 bankruptcy and the value of your business is dealt with inside the Chapter 13 plan. It gets somewhat complicated when we file a Chapter 13 and the value of the business is included in the plan.
I offer a free consultation and the best thing to do if you own a business, and the business is successful and you want to keep it, is to come and take advantage of that consultation. Bring me the financials connected to the business. We really need to know what the value of the business is, and I can show you with a diagram how it fits into a Chapter 13 plan. Yes, you will be able to keep the business if you want to and it is successful, but it will have to be a Chapter 13 bankruptcy. There are lots of moving pieces that need to be taken into consideration when we have a business that’s working, and so my suggestion is to come and see me. I’ll spend as much time with you as necessary to explain everything to you and show you how business and bankruptcy can work together.