Understanding the Right Kind of Bankruptcy for Your Business

Getting your online business degree was a great idea. You will be able to do all kinds of things with it. But, if you decided to dive right into the entrepreneurial world you may have come to realize that it’s a lot harder to make things work than you anticipated. So, if your first attempt at owning a business seems to have been a regrettable decision, understanding the right kind of bankruptcy for your business is a necessity.

You could hire a bankruptcy attorney in Kansas City. Kentner Wyatt, LLC has loads of professional experience in this field. They are well-trained to handle your uniquely personal situation. And, since they have represented thousands of clients, you will know you’re joining a group of satisfied individuals. Plus, you can get a free consultation. However, it might be a good idea to understand the differences between the three types of business bankruptcies.

3 Types of Business Bankruptcies

The truth is that bankruptcy in small businesses happen. They sometimes don’t make it and the reasons for failure are plentiful. So, if you have found yourself in a trying financial situation, you will be wondering which of the 3 types of business bankruptcies is the best solution for you. Bankruptcy can help you eliminate debt and might even assist you in repayment, which can allow you to keep your business open. So, learn more about these options:

1. File a Chapter 7 business bankruptcy. When you realize that your business can’t even survive after a restructuring, this is your best option. These are the types of bankruptcies to file when a business simply has no future. Or, if you haven’t acquired any substantial assets and find yourself in overwhelming debt. Basically, this is the way to go if you are certain that your business is over. Learn more.
2. Consider a Chapter 11 business reorganization when you have hopes of continuing the company. A court appointed trustee will help you reorganize the business under this process. And, the cool part about this is that the trustee can be you, if you are the owner. You will create a reorganization plan and then your creditors will vote on the plan you’ve designed. If everything seems equitable, repayment and payment plans can extend more than 20 years. Keep in mind that these kinds of bankruptcies are quite complex and they could take longer than a year to complete. Click here for additional understanding.
3. Your last option is a Chapter 13 bankruptcy. This is a personal bankruptcy and is generally only employed when your company is a sole proprietorship. In this option, you can file a repayment plan in court that delineates how you intend to pay back your current debts. Your repayment options will be based on the property you own, how much debt you have accrued, and the amount of money you are making. Since personal assets are typically attached to sole proprietorship companies, this form of bankruptcy is the best method to ensure you don’t lose your house and other things of value.

Before you make your decision to file bankruptcy on your business, it is highly advisable that you contact an experienced bankruptcy attorney like, Kentner Wyatt, LLC. They can help you make the most informed decision. If you need more information on business bankruptcy, please read this.