The Lee Law Firm has years of experiencing in both debt elimination and debt restructuring. Our attorneys have helped thousands get out of debt and regain control over their financial future. It is our goal to offer these same personalized services to local business owners and companies.
Chapter 7 Business Bankruptcy
There are options available for businesses that are suffering from overwhelming debt and financial problems. However, when a business seeks debt elimination through Chapter 7 there are few things business owners should know.
First, not all debts are eligible for discharge under the Chapter 7 case. Debts such as taxes, money obtained fraudulently or money owed as the result of the company’s negligence cannot be discharged in bankruptcy. A business looking to have debts such as these eliminated through their bankruptcy filing will find themselves ineligible to file for Chapter 7.
Second, much of the company’s assets are at risk for liquidation in a business Chapter 7 case. In some cases, all remaining assets to the company are liquidated in order to satisfy debts. When this happens the business is usually closed and ceases operation. Business owners are generally required to relinquish ownership rights, as well as give up any position as a shareholder when a business is dissolved through Chapter 7 bankruptcy.
Special Considerations
There are a few important business bankruptcy considerations that should be reviewed before any business decides to file for bankruptcy. Bankruptcy proceedings can vary by business type and how a bankruptcy case is pursued for a sole proprietorship may be vastly different than with a corporation.