If you’re like most small business owners, you opened your doors to provide a service or a product you feel adds value to your customers’ lives.
You’ve poured your heart and soul into your work over the years and never considered the day you’d think about closing your doors and cutting your losses.
We know. And we understand. We hear from many business owners like you.
Filing Chapter 7 Bankruptcy
While bankruptcy may be a hard pill to swallow, its benefits are undeniable. Most of the unsecured debts you incurred while operating your business can be discharged.
In a matter of months, you can end creditor harassment, cease stress over finances and start anew.
Protecting Your Assets
You must surrender to your bankruptcy trustee any assets that exceed the exemption level established by the state in which you file. This non-exempt property is then liquidated and the proceeds are distributed to your creditors.
But not all property can be sold by the trustee. Where you file your bankruptcy petition will determine which of your assets, if any, are protected from liquidation.
In Pennsylvania and Delaware, common exemptions include your personal belongings, bibles, automobile, trade books and supplies, retirement accounts and owner-occupied homes.
Understanding the process
Your bankruptcy case commences the moment you file your petition in court. Within 30 days, you’re scheduled for a 341 meeting of creditors. You must attend this hearing to testify under oath about the income, debts, assets and other information you provided in the petition.
While attendance is not mandatory for your creditors, they are allowed to attend and question you if they desire.
Obtaining a bankruptcy discharge
Your creditors will have 60 days following the 341 meeting to object to your bankruptcy discharge.
If they choose not to, you will be granted a full discharge, retain possession of any exempt property and your creditors will be barred from pursuing further action on the debts you included in your petition.
Schedule a Consultation
Chapter 7 may not be the only bankruptcy option available to you. Before you file your petition, speak with a knowledgeable attorney.
If you’re in or near Pennsylvania or Delaware, contact our firm at (302) 225-8340 or use this online form to request a consultation.