Small businesses make up a great deal of the U.S. economy, as noted by the U.S. Small Business Administration. Unfortunately, a small business owner could be in debt for various reasons. Fortunately, a Utah bankruptcy attorney from Mountain View Law Group can assist.
When a business owner files for bankruptcy, the owner states that the business has an overwhelming amount of debt. Bankruptcy lets the owner pay the debt over time or eliminate it slowly. Whether or not you can still run your business depends on which chapter you file.
As a small business owner, you may file either a Chapter 7 or Chapter 11 bankruptcy.
When you file a small business bankruptcy Chapter 7, you must close your business. It uses liquidation as a method to pay off your debt. All non-exempt assets will be seized, sold, and used to pay off your debt. Remember that the assets they can take depend on your business structure. Unsecured debts can be nullified.
On the other hand, with a small business bankruptcy Chapter 11, you can continue to run your business. The process involves reorganization and possibly downsizing. The small business owner must repay the debt in agreed-upon monthly payments.
A Utah attorney can assist with small business bankruptcies and help owners decide which option is right for them. The attorney can also help with the filing process. Contact our office today to discuss bankruptcy options and which is right for your business by calling 801-393-5555.
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