Woodlands Business Bankruptcy
A majority of small businesses fail within the first 5 years. Often, it’s due to extenuating circumstances, which can leave the owner/proprietor saddled with debt. If your small business is closing its doors and looking to liquidate, James R. Jones, Attorney at Law can help. Our experience with Chapter 7 business bankruptcy in Woodlands TX has given us special insight into how to help you.
Understanding Chapter 7 for Small Businesses
In cases where a business owner has no way to pay back small business debt, Chapter 7 liquidation is usually the best course of action. The process involves turning all assets over to a Chapter 7 trustee, where it’s then liquidated to pay back creditors. During this process, the business must cease all operations.
- What Are Signs That My Small Business Should Consider Filing For Bankruptcy?
- Why Would A Corporation Or LLC File A Chapter 7 Bankruptcy?
- What Types Of Debts Can Be Discharged In A Small Business Bankruptcy?
- Will I Be Able To Operate Business As Usual During A Small Business Bankruptcy?
Most small businesses failing to pay their debts are eligible for Chapter 7. It’s best to consult with a qualified business bankruptcy attorney in Woodlands TX to determine exactly what steps need to be taken in order to initiate and expedite this process.
Types Of Businesses That Can File A Chapter 7 Bankruptcy
If your business is struggling financially, and you are finding it difficult to keep afloat, you may want to consider filing a bankruptcy for businesses, such as a Chapter 7. However, you should always consult with a business bankruptcy law attorney before moving forward with any decision involving bankruptcy. With the assistance of a business bankruptcy law attorney, you can determine whether a Chapter 7 bankruptcy for businesses is the right solution.
A Chapter 7 bankruptcy works differently for businesses than it does for consumers. The bankruptcy process will also vary amongst businesses depending on the business structure and/or entity. Therefore, it is essential to understand how the type of business entity and structure can be affected by filing a Chapter 7 bankruptcy.
Sole Proprietor: A sole proprietor can discharge all qualifying debt, both personal and business, since the business and owner are treated as one entity. Credit card debt, medical bills, past-due lease obligations, and personal loans are some of the debts that can get discharged in a Chapter 7 bankruptcy for businesses. You can also protect personal and business assets by using exemptions. Moreover, you can still operate the business while wiping out your debts.
Partnership: Partnerships are able to file Chapter 7, but there is no discharge of business debts. Moreover, there are no exemptions to protect property if filing as a partnership. The business will be liquidated to pay off the creditors. A Chapter 7 bankruptcy for businesses could work for a partnership if the owners are planning to close the business permanently. However, it is wise to consult with the best business bankruptcy lawyer in Woodlands, TX, James R. Jones, Attorney at Law, to determine whether a Chapter 7 will work for your purposes.
Corporation & Limited Liability Corporation (LLC): Similar to partnerships, corporations and LLCs will not get a discharge. Instead, a liquidation will take place to pay off creditors. A Chapter 7 bankruptcy for businesses can prompt risks if done incorrectly or because of liability concerns. Therefore, before filing a Chapter 7 as an LLC or corporation, it is highly advised to consult with a business bankruptcy law attorney.
Creditors’ Rights In Bankruptcy
During bankruptcy, it is worth remembering that creditors also have rights. Creditors have the right to pursue certain lawsuits or legal actions during a bankruptcy. They also have the right to get paid back when the assets are being liquidated for such purposes. Of course, that will depend on the creditors’ priority statuses. Creditors also have a right to challenge a bankruptcy discharge. When it comes to bankruptcy, you need a creditors’ rights in bankruptcy attorney to protect your interests. A creditors’ rights in bankruptcy attorney can make sure that you understand the conditions and risks of bankruptcy. By doing so, you will be able to make informed decisions and guard against legal actions from creditors.
When planning to file a bankruptcy for businesses, it is important to retain the services of the best business bankruptcy lawyer. James R. Jones, Attorney at Law, has extensive experience assisting clients with commercial and consumer bankruptcies. Contact our firm today to schedule a consultation.
We Represent You
There are many important steps in filing Chapter 7 as a business owner. We’re with you every step of the way. We’ll file your petition with the local bankruptcy court and help shield you from creditor inquiries during the process via an Automatic Stay. Look to us to file debt schedules and statements on your behalf, as well as inform the court of your current income, expenses, contracts and other pertinent information. Finally, we’ll help you appoint a Chapter 7 trustee and begin the liquidation and repayment process.
File with Confidence
Realizing the need to file Chapter 7 Bankruptcy is a crushing blow to any business owner… but it can also be a sigh of relief. Let James R. Jones, Attorney at Law take the burden of debt off your shoulders and help you overcome your business’ shortcoming the right way. Reach us today at (713) 992-2039 to schedule a 30-minute consultation.
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