Bankruptcy Can Protect Small Business Owners From Debts
Small business owners who have significant debt may be able to discharge those debts by filing personal bankruptcy. At the Maida Law Firm, our lawyers offer a free initial consultation to discuss your business bankruptcy options. With offices in Beaumont and Houston, we serve small business owners throughout southeast Texas and the Texas Gulf Coast.
Can My Business File Chapter 7 or Chapter 13 Bankruptcy?
Your business has the option of filing Chapter 7 or Chapter 13 bankruptcy as long and you are not a corporation or a limited liability company. Filing Chapter 7 or Chapter 13 bankruptcy is far less expensive than filing Chapter 11 bankruptcy.
If the business owns property, there is no exemption for that property when you file bankruptcy. However, you can keep the property if you pay the appraised value to the bankruptcy trustee. The appraised value may be far less than you paid for it.
Am I Responsible for Business Debts?
If your business is a limited liability company, the corporate shield may protect you from liability for business debts, lawsuits and judgments. However, many lenders and creditors require small business owners to personally guarantee debts. If you have signed as a guarantor of business debts, you would be personally responsible. You are also personally responsible for tax debts.
You can discharge business debts for which you are responsible by filing personal bankruptcy. You can also place tax debts in a Chapter 13 repayment plan and pay them off over a three- to five-year period.
Contact Our Houston Beaumont Business Debt Lawyers
Our Beaumont and Houston small business bankruptcy attorneys offer a free initial consultation to discuss your financial situation. Call 409-291-5117 to schedule a consultation at our Beaumont office or 713-987-3910 to schedule a consultation at our Houston office.
