Your Business and Your Personal Bankruptcy

Bankruptcy Attorney

Many individuals that have run into personal financial difficulty also may have a small business. If this is the case they are often concerned as to how their personal bankruptcy could affect their business. Every individual is unique when it comes to their finances and as to how a bankruptcy is going to affect them.

There are two common types of bankruptcy relief which is the Chapter 7 bankruptcy and the Chapter 13. In a Chapter 7 bankruptcy there is a possibility that some of the assets that the individual owns will be sold to meet the demands of the creditors. Whether it will affect the business will all depend on the status of the business itself and its debts.

In a Chapter 13 bankruptcy, the process is different where it allows the individual to keep their property but they must make payments based on a payment agreement plan that is approved by the courts.

What will be taken into account is the amount of money that you have coming in which will be determined by a means test. If you are gleaning money from your business then this will be taken into account. In regards to your business, it may fall into some of the exemption categories.

What is important, now that you have reached a financially bad situation, is that you speak to a qualified bankruptcy attorney who can answer your questions concerning your business and your personal bankruptcy. It is important to realize that bankruptcy is a viable form of debt relief when there are no other options or opportunities available to you to help get your financial situation back on track.

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