A business bankruptcy is significantly different than a personal bankruptcy. A business bankruptcy can be a chapter 7 bankruptcy, chapter 13 bankruptcy, or a chapter 11 bankruptcy. Each applies in different situations and has different benefits. Call the bankruptcy lawyers at Krupp Law for answers to your questions.
What is a business bankruptcy – chapter 7?
A chapter 7 business bankruptcy is a liquidation. Effectively, the business assets are liquidated to pay business creditors. A business bankruptcy is not required to qualify for bankruptcy under means testing and is not required to complete pre-bankruptcy counseling. A business never receives a bankruptcy discharge. A business bankruptcy provides for orderly liquidation of assets and stops creditors from seizing assets and harassing the owner of the company. Frequently a business bankruptcy is the best way for a small business owner to get a true fresh start.
Typically, a small business owner has personally guaranteed the business debt. As a result, the business owner is required to filed chapter 7 personal bankruptcy also. After a chapter 7 bankruptcy, the owner can seek other employment or start a new business free of overly burdensome debt and continued harassment from creditors.
How much does it cost to file business bankruptcy chapter 7?
Typically a chapter 7 business bankruptcy cost ranges from 1,350.00 (which includes the filing fee) to 10,000.00 depending on the complexity of the situation.. Our offices charges nothing for the first appointment. Business funds can be used to pay for your bankruptcy to file for bankruptcy. Also, you can liquidate business assets to pay for your bankruptcy attorney fees.
How long does it take to file and complete a business bankruptcy chapter 7?
A chapter 7 bankruptcy usually take about 90 days from start to finish. You will have one meeting with the bankruptcy trustee to review your case. You will not have to go in front of a bankruptcy judge. There is a 60 day waiting period after your meeting with the trustee.
How much debt do I need to have to file for business bankruptcy chapter 7?
There is no minimum or maximum amount of debt to file a chapter 7 bankruptcy.
What assets can I keep in a business bankruptcy chapter 7?
Nothing. in a business bankruptcy, there are no exemptions (property you get to keep). All assets are liquidated to pay creditors.
Can I continue to run my business while in bankruptcy?
You cannot continue to run your business during a chapter 7 bankruptcy. The business is closed and liquidated or sold by the trustee as an ongoing business. You may qualify for a chapter 13 personal bankruptcy which would allow you to continue to operate your business during your chapter 13 plan. Additionally, you may qualify of a chapter 11 business bankruptcy. Under a chapter 11 bankruptcy, the business continues to operate.
What debts are discharged in a chapter 7 bankruptcy?
All the business debts are discharged. Certain taxes or claims of fraud by the owner are not. The owner may be responsible for those debts personally. Typically, social security taxes that are owed by the business cannot be discharged.
What is the process to file for business bankruptcy?
The process to file for business bankruptcy is easy with the help of a great bankruptcy attorney from Krupp Law Offices. Just call for an appointment. We will review you case on the phone. If it appears that we can help, we will set up a free appointment. After your appointment, will prepare your bankruptcy petition and have you sign it. It is filed with the court. About 5 weeks later there is a meeting with the trustee. We attend that meeting with you. After your meeting with the trustee, there is a 60 day waiting period and your case closes. It’s jus that easy.
Who can I talk to for more information on business bankruptcy?
You can speak to a bankruptcy lawyer immediately to review your specific case. We offer a free consultation to review your case.
How do I get started with my bankruptcy?
Getting started is easy. Just pickup the phone and call our office. You will speak to a bankruptcy attorney immediately.
KRUPP LAW OFFICES PC
Grand Rapids Bankruptcy Lawyer
161 Ottawa NW Suite 404
Grand Rapids MI 49503