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Solving Business Debt Problems With Bankruptcy

Many small business owners are unprepared for financial emergencies. Often, they are at risk for potential personal financial exposure when their businesses are in trouble. This can be true for businesses owned by one person and even for corporations and other formations.

Our attorney at J. Robinson Law Firm, PLLC, in Shelbyville and Frankfort, Kentucky, helps protect small-business owners when they can no longer afford their business expenses. We help them weigh different debt relief options and, if necessary, walk them through the bankruptcy process. We are experienced and knowledgeable and strive to protect our clients’ assets from creditors and tax liabilities.

Bankruptcy can give you time to pause and catch your breath.

Your Business Matters – With A Strong, Experienced Lawyer

Our attorney dedicates himself to helping small business owners achieve financial recovery. He has extensive experience in bankruptcy and commercial disputes to advise clients on the options that will best fit their situations.

Most clients need immediate relief. Our lawyer can get the process started quickly and take all steps necessary to minimize delays. They are responsive to client communications and effectively manage every detail of every case. They are successful because they have an in-depth understanding of all aspects of bankruptcy and business law.

Our attorney has helped countless members throughout the community obtain a fresh start. He counsels clients on the differences between Chapter 11 and Chapter 7. Chapter 11 is useful when a small business owner can make payments under a plan that reorganizes his or her debts. This could allow the owner to keep the business.

In many cases, reorganization under Chapter 11 is not optimal, and clients are better served by filing for Chapter 7 personal bankruptcy. With Chapter 7, small-business owners could eliminate debts such as:

  • Personal guarantees on business loans
  • Tax debt

If your small business is underwater, our lawyer can protect your rights and your assets while helping you choose a plan that fits you.

Should You File For Small-Business Bankruptcy?

Deciding whether to file bankruptcy is a life-changing decision for any small-business owner. When making your decision, consider the following factors:

  • Debt relief: Bankruptcy can eliminate or restructure overwhelming debt, giving you a fresh start.
  • Business continuity: Depending on the type of bankruptcy, you might be able to continue operating your business.
  • Credit impact: Bankruptcy will impact your credit score negatively and may affect future borrowing opportunities.
  • Asset protection: Filing for bankruptcy can protect your essential assets from creditors and stop creditor harassment.

If you are facing insurmountable debt and considering bankruptcy, consult with a knowledgeable attorney to explore your options and determine the best course of action for your situation.

What Happens When A Business Files For Bankruptcy?

When a business files for bankruptcy, the process begins with submitting a petition to the court. This petition includes detailed financial information about the business. Upon filing, an automatic stay is issued, which halts most collection activities and legal actions against the business. Depending on the type of bankruptcy filed – Chapter 7, Chapter 11 or Chapter 13 – the business may either liquidate its assets to pay creditors or restructure its debts to continue operations. Creditors receive notification and have the opportunity to file claims against the debtor. Throughout the process, the business must adhere to court directives and work with a trustee who oversees the proceedings.

What To Expect When Filing For Bankruptcy

Filing for bankruptcy involves several steps and requires thorough preparation. This is a broad overview of the process:

  • Gather your records: Initially, you’ll need to gather all financial documents, including income statements, tax returns, and a list of assets and liabilities.
  • File the bankruptcy petition: An attorney will help you complete the necessary forms and submit them to the court.
  • Meet of creditors: Expect to attend a meeting of creditors, where you’ll answer questions about your financial situation.
  • Court grants petition of bankruptcy: The court will review your case and make decisions regarding debt discharge or reorganization. Throughout this period, you must comply with court orders and stay informed about your responsibilities.

While the process can be complex, it offers a pathway to financial relief and a fresh start.

Call Our Attorney For A Telephone Consultation

Small-business owners can turn to our lawyer and staff for sound bankruptcy counseling and loan restructuring. To schedule a free initial telephone consultation, call one of our Kentucky offices in Shelbyville or Frankfort at 502-805-9602. You can also contact us online.

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