Bankruptcies can happen to any-sized business at any time. For a small business owner facing the prospect of bankruptcy, knowing your options and contacting a reputable bankruptcy attorney can help make the process pain-free and financial recovery possible.
Chapter 7 bankruptcy is an ideal option for sole proprietorships and small businesses. With a Chapter 7 bankruptcy a trustee will be named to sell all of the assets of the business, including its client list, and all proceeds will go toward paying any outstanding debts. Any unpaid debts after the liquidation sale are forgiven and the business no longer exists.
A reorganization or Chapter 11 bankruptcy is typically used by larger companies that do not want to give up their business, but want time to reorganize it. These types of bankruptcies are typically more expensive than a Chapter 7 and entrepreneurs should be warned that this usually entails their business being operated under increased scrutiny from a court-appointed trustee for a period of time.
A repayment or Chapter 13 bankruptcy, often used by personal consumers, is a type of bankruptcy where the business owner is required to file a repayment plan with the bankruptcy court disclosing how he or she will pay back all debts.
Click here to learn more about the various bankruptcy options available to businesses of all sizes.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.