Bankruptcy for Small Businesses

The Differences Between Personal and Corporate Bankruptcy

Bankruptcy is a common tool used by both individuals and businesses in order for them to get rid of debt that will likely continue to go unpaid, and to allow for a clean financial slate. However, personal bankruptcy and business bankruptcy are not the same things and have different rules and chapters.

Small Business Owners: Chapter 13 vs. Chapter 7 Bankruptcy

For most small business owners, Chapter 7 bankruptcy is a better option. But in some situations, Chapter 13 bankruptcy is the way to go.

Bankruptcy: Sole Proprietorship Vs. Partnership

Bankruptcy laws apply differently depending on whether a business is a sole proprietorship or a partnership. Sole proprietorships must file personally as there is no legal separation between the owner and the business. Therefore, an owner may file for Chapter 7, Chapter 11, or Chapter 13. A partnership

How Does a Sole Proprietorship File for Bankruptcy?

A sole proprietorship is a one-owner business (or in some cases, a business owned by a married couple) that has not been incorporated or structured as a limited liability company (LLC). If you have started your own business but haven't created a formal corporate or LLC structure, you have a sole proprietorship.

Will You Have to Close Your Business if You File for Personal Bankruptcy?

You may have to shut your business down if you file for Chapter 7 personal bankruptcy. However, if you own an LLC or corporation with others, you may be able to keep your doors open, even if you are personally liable for a significant portion of its debt.

Chapter 13 Bankruptcy for a Small Business Owner (Sole Proprietor Only)

Chapter 13 bankruptcy is a good type of reorganization bankruptcy for a small business owner who is a sole proprietor. In Chapter 13, you use your income to fund a repayment plan that lasts from three to five years. If you make all of the payments required by the plan, qualifying debts get discharged when the plan ends.

Chapter 11 v. Chapter 13 for Small Businesses

IF your small business is struggling with debt, you can file for either Chapter 11 bankruptcy or Chapter 13 bankruptcy. Both types of bankruptcy allow you to continue operating your business while you reorganize debts and pay creditors over time. However, while there are some similarities between

When Is Chapter 11 Bankruptcy a Good Option for a Small Business?

While Chapter 11 bankruptcy is often used by big corporations to solve their financial problems, it can also be used effectively by a small business in certain situations. Since Chapter 11 it is significantly more expensive than the other bankruptcy chapters, it is important to understand what it can

Small Business Bankruptcy: Part 1

Part one of a two part series on Bankruptcy for Small Business Owners

Small Business Bankruptcy: Part 2

Part two of a two part series on Bankruptcy for Small Business Owners