Many small-business owners are surprised to learn that Chapter 11 is not the only bankruptcy option available to them. In fact, while Chapter 11 offers many powerful features, it is often not the best option for the small-business owner. At Balbus Law Firm, you will find an attorney who has guided small-business owners through Chapter 11, Chapter 13 and Chapter 7. We will take care to educate you about all the options available and guide you toward the one that is best for protecting you and your business, based on your situation.
Chapter 7 For Small Businesses
Although Chapter 7 is typically used to liquidate small businesses, with proper planning it is possible to take business assets through a Chapter 7 and start fresh much less expensively than Chapter 11.
Chapter 13 For Small Businesses
Chapter 13 is used much less frequently for small businesses. However, in the right situation, it can prove effective. While a business entity is not eligible for Chapter 13, a sole proprietorship is. When appropriate, an entity may be liquidated and the business switched to a sole proprietorship in order to benefit from filing Chapter 13.
Chapter 11 For Small Businesses
Chapter 11 allows a small business to restructure its debt and reorganize its operations by proposing a plan of reorganization for creditor and court approval. Under the confirmed plan, the business can reduce its debt by repaying a portion of its obligations and discharging others. The business can also terminate burdensome contracts and leases, sell unwanted assets, and rescale its operations in order to return to profitability. In Chapter 11, secured debts can be reduced to the value of the property securing them.
To Learn About Small Business Bankruptcy, Contact Us For A Free Initial Consultation
For more information about bankruptcy and small businesses in a free initial consultation, call 203-286-4121 or email us.
Balbus Law Firm is a debt relief agency. We help people and businesses in New York and Connecticut file for bankruptcy relief under the Bankruptcy Code.