As a business owner there are a lot of risks that you take. When hard times come you are often the one that takes the majority of the fall or are put in the position of fixing any problems. Owning a business can be one the most thrilling you do and it can offer a feeling of accomplishment that you have done something on your own. Unfortunately, even with a steady flow of customers, many owners do not receive enough to cover the many costs that are associated with owning a business. From the insurance, repairs and cost of workers, you may find yourself without the means to keep up with the bills.
For those that are in this position, bankruptcy may be suited to your needs. There is not only one form of bankruptcy that can be used for a business owner and determining which type to file under should be worked out with a professional. For a business that is without any financial means and an owner that is looking to be free from the debt rather than get the business back on its feet, Chapter 7 may be the right option. Often times this is not the best choice for a smaller business. In cases where the plan is for the business to continue and some assistance is needed to get there, Chapter 11 can offer this. This potentially allows for the increased health of the business and a more successful future.
Chapter 12 is a little more specific in who it is fit for and not all businesses will be right for this option. For family farmers it can allow for reorganization to adjust the circumstances and ultimately offer a better position. An individual that runs an unincorporated business or that is self-employed has the option of filing under Chapter 13 if their secured debts are lower than $1,081,400 and their unsecured debts are lower than $360,475.
There are numerous factors that go in to determining which route to take, including the size of the business and the level of debt. Smaller business versus larger companies will typically have varying needs and the differences between these cases should be understood. Since there are a number of options that are available, the best thing to do is start by contacting a Long Island bankruptcy lawyer from our office and allowing them to review your case. Bankruptcy may be the right choice for you and your business to find the outcome that you are looking for. Contact our firm at our toll free number. We serve residents throughout the Nassau and Suffolk County areas.