How Will Business Bankruptcy Affect Me?

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Whether or not you suffer personally from filing bankruptcy to protect your business depends on the chapter you file. If you file chapter 7, you (and the shareholders of your corporation) can lose your stock values if shares are liquidated with the corporation’s assets. If you file chapter 13, the shares of the corporation will be protected. Instead of liquidating, you’ll enter into an agreement to repay your creditors, and keep your business open during that time. Which bankruptcy is right for your business?  Chapter 13 bankruptcy is not an ideal solution for every business. If you have personally guaranteed …

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