Chapter 7 Bankruptcy Lawyer in Longmont
Small Businesses Bankruptcy in Boulder County, Serving the Front Range to the Western Slope
Even in the best of times, many new businesses fail within their first few years. Small businesses are particularly prone to becoming overwhelmed with debt before sales can catch up.
Filing for bankruptcy for your business may seem like a drastic measure, since you are uncertain how it will affect you and your future ability to obtain financing. Yet, small business bankruptcy helps you regain your financial footing. This can be either through a liquidation process or else a reorganization to pay debts and get out from under burdensome contracts. To learn how bankruptcy might help both you and your company, you need to consult with an attorney with decades of experience in both law and small business.
When you discuss your financial crisis with Business Bankruptcy Solutions, I utilize nearly 20 years of experience as a lawyer and over 30 years as a businessman. I help you find the best possible solution. I know exactly what it takes to run a small business and what problems you may be facing. Your case requires personalized attention and a custom legal strategy. I, Patrick O' Malley, am here to quickly and efficiently provide that for you.
Chapter 7 Bankruptcy for Small Businesses
Chapter 7 is a liquidation bankruptcy. It is best for small businesses with overwhelming debt, few assets, and revenue that is insufficient to support a stable multi-year repayment plan. This type of bankruptcy can be used by sole proprietors, partnerships, LLCs, and other corporations.
During a Chapter 7, the bankruptcy trustee sells your business’ assets to pay the debts. The exact process depends on what type of business structure you have.
Sole Proprietor Chapter 7
Because you are personally liable for all of your company’s debt, Chapter 7 bankruptcy will apply to both your personal and business debts and assets. This is why it is best if you have very few assets; you will only be able to protect a few specific assets, like home equity, retirement, auto, and personal items.
This process takes several months. The liquidation process eliminates all debt, except for non-dischargeable debt, like back-taxes and alimony (those debts are paid first when the assets are sold).
Corporation & LLC Chapter 7
Chapter 7 bankruptcy for a corporation involves liquidation and dissolution. Unlike Chapter 11, Chapter 7 does not involve contract restructuring, nor a repayment plan. The assets are sold to pay whatever debts can be paid with the money. Your business will be dissolved once all applicable assets are liquidated. Creditors will be paid according to bankruptcy law’s priority rules. At the end of the process, no final discharge of debt occurs, because creditors cannot collect from a business that no longer exists.
While you may want to avoid dissolving your company, Chapter 7 can still be advantageous. It closes down your business in a transparent way, eliminates your debt, and leaves you personally with a clean slate to begin a new venture. Additionally, Chapter 7 implements an automatic freeze on most collection efforts.
Ready to take control of your finances? Retain skilled legal support, call (720) 674-7311 or filling out an online contact form today. Business Bankruptcy Solutions offers flexible hours for consultations
He's a really sharp guy who knows his stuff.- H. Morgan Cavanaugh