How Will My Personal Bankruptcy Affect My Business?

bankruptcy

If you’re not running a sole proprietorship, lawsuits against your business aren’t automatically “stayed” by your personal bankruptcy filing. In most instances, a bankruptcy filing, through the power of the automatic stay, halts any lawsuit against you and your business or prevents a threatened lawsuit from being filed in court. But there are a few exceptions to this rule; situations in which the automatic stay would not apply. In these cases, a creditor’s lawsuit could continue in spite of your bankruptcy filing. Because stopping such a lawsuit is likely one of the reasons you’re filing bankruptcy, it’s extremely important to …

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Business Bankruptcy: Frequently Asked Questions

What is the difference between chapter 7 and chapter 11 bankruptcy? Businesses usually have a couple of choices when it comes to filing bankruptcy. Chapter 7 bankruptcy is reserved for companies that are struggling so badly they want to throw in the towel. These companies are liquidated, and all assets (and proceeds from assets) are distributed between shareholders and creditors. Chapter 11, on the other hand, is filed when the company wishes to reorganize its debts and get a fresh start. Under this type of bankruptcy, the company is allowed to remain in business during the bankruptcy process. Read more here…

How will your personal bankruptcy affect your corporation?

Your corporation is considered a separate entity. Therefore, if you file personal bankruptcy it will not affect your corporation as a whole.  However, if your personal shares of the corporation are considered your personal assets, those shares could be liquidated as part of your assets, and the proceeds from the sale would be used to repay your creditors. Your corporation is considered a separate entity. Therefore, if you file personal bankruptcy it will not affect your corporation as a whole.  However, if your personal shares of the corporation are considered your personal assets, those shares could be liquidated as part …

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Is your Small Business in Financial Trouble?

If you’re considering declaring bankruptcy, we realize this is not an easy decision for you to make. However, you are not alone in making that decision. If you’re like many other business owners (small and large), staying on top of your business debts and keeping your doors open has proven to be a struggle in this economy. If your business is in financial trouble and you’re considering bankruptcy a viable debt relief option, you may want to check out the information we’ve compiled in the Small Business Bankruptcy section of our website. If you’d like to schedule a free, no-obligation consultation …

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