As a small business owner who is facing the prospect of filing for bankruptcy, the waters can be a little murkier than for the average individual who has only personal unsecured debt. There are a variety of factors that can influence which type of bankruptcy you are eligible to apply for and which bankruptcy protection would be the most suitable given your particular circumstances. Certain situations would call for the application for Chapter 7 others for a Chapter 11 and still others would warrant filing for Chapter 13 bankruptcy.
If you are a sole proprietor of a small business you are considered both, a business and an individual, as one entity. This means that the advantages that may be realized by Chapter 7 bankruptcy may be offset by the lack of exemptions allowed under a business bankruptcy.
The rules for a sole proprietor and Chapter 11 and Chapter 13 are even more involved and complex and in most cases take a very much longer time to complete than a Chapter 7. The process involves the courts finding the balance so that you are able to provide your creditors with repayment structured over a certain period of time and in many cases will even allow you to stay in business in order to continue bringing in revenue if the business is still deemed profitable.
The intricacies of sole proprietorship almost always require the assistance of a qualified bankruptcy attorney. Dayton Ohio has it’s own set of bankruptcy rules, and an attorney who specializes in bankruptcy will help you navigate those murky waters and guide you through the process successfully.