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 loans or leases, it may not provide the protection you need. You can be held liable in any lawsuits filed against your personal assets.
If this is the case, you must file a personal bankruptcy petition separate from the corporation’s to obtain the total debt relief you seek.
Schedule a Consultation
If you feel you’re on the verge of bankruptcy, contact our office immediately. Don’t attempt to navigate the process alone. Schedule a private consultation with Attorney Brown to discuss your options. Dial 610-734-0750 or use this online form.