There are two types of bankruptcy a small business owner can file depending on their financial situation. While bankruptcy is a serious step to take, it can help a business owner save their assets and prevent the loss of their business. It is important that business owners are fully educated about their options so they can make the right decision, which is why many hire a business bankruptcy lawyer in Ottawa, KS.
If someone is the only owner of a small business, they may file for chapter 7. It is important one files for chapter 7 as an individual and business owner so all of their debts can be covered. In this type of bankruptcy, the person may have to submit some of their business and personal assets to be liquidated to pay down the debts they owe. A third-party is placed over the bankruptcy, working with the individual and the creditors they owe so their bankruptcy can be settled in as few as six months.
If one is the sole proprietor of a plan, they may be eligible to file for chapter 13. Business partnerships, LLCs, and corporations are not eligible. With this type of bankruptcy, a person is given a certain period of time to pay down their debts. Some of their debts may be absolved, depending on the type of debts owed. Most people are given three to five years to pay down their debt. A person will need to make monthly payments each month to ensure they are sticking to their restructured payment plan so their bankruptcy stays in effect.
Those who are in a great deal of financial debt can find help with a business bankruptcy lawyer in Ottawa, KS. It is important business owners meet with a lawyer to determine which bankruptcy option will be most viable for their financial situation. They should click here to learn more. With the help of a lawyer, filing for bankruptcy will be much easier for business owners.