Once you’ve poured your entire life into making a business work, it’s defeating to realize you may lose it due to overwhelming debts. While Chapter 7 bankruptcy requires you to sell nonexempt assets to pay off creditors, filing for Chapter 13 with a bankruptcy attorney in Dayton Ohio may end up saving the business and the rest of your assets.
The main difference here is that Chapter 13 allows you to keep your possessions while simply working through a repayment plan over a period of time. There are a number of tests a Chapter 13 filing must pass before it can be accepted, but a professional bankruptcy attorney can assist in ensuring that your chances of success are greater than they would be otherwise. If a business is considered a separate entity, it cannot, technically, file for this type of bankruptcy (a Chapter 11 filing may be more sufficient here) as corporations and limited liability companies are not individuals, and only individuals may declare Chapter 13. But if the sole proprietor or owner files the claim in their own name, proves that they are personally liable for the debt, and includes business debt under the claim, it may be accepted.
Once the Chapter 13 claim has been successful with the help of a bankruptcy attorney, the benefits for a business are definitely there. These include only paying off priority debts, removing non-priority unsecured debts entirely, and possibly reducing the balance of various secured debts as well. Because you’re not forced to give up your business to pay off creditors in this case, you may keep your business and have a fresh start for success.