Personal & Business Bankruptcy
Individuals or businesses that are struggling financially have the option of filing for bankruptcy. There are three different forms of bankruptcy that you should speak with a personal or business bankruptcy lawyer about: Chapter 7, Chapter 11, and Chapter 13. The types of bankruptcy that you may be able to file will depend on whether you are filing for personal or business bankruptcy.
Personal Bankruptcy Options
Under personal bankruptcy law, individuals can file for either Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
If you choose to file for Chapter 7 bankruptcy, your assets will be classified as either exempt or non-exempt.
Most debts can be discharged during a Chapter 7 bankruptcy, but there are some exceptions. For example, child support payments and income taxes are not dischargeable. Your attorney can explain more fully the benefits of a Chapter 7 and whether it is right for you.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a personal reorganization of your debts. The court may allow you to make smaller payments that are more affordable given your current income.
You will be required to create a payment plan that details how and when you will make payments to your creditors. This plan will be submitted to the court for approval before it is made official. Our attorneys will work with you to craft a Plan that is affordable and which addresses any debts that must be paid.
Please contact Ilene Dell’Acqua at 303-758-5100 x 105 if you have questions about personal bankruptcy.
BUSINESS BANKRUPTCY OPTIONS
Businesses may be able to file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. But, it’s important to understand how filing for each type of bankruptcy will affect your business and personal life.
Chapter 7 Bankruptcy
One of the main benefits of filing for Chapter 7 as a sole proprietor is having the majority of your business and personal debts discharged. However, there are downsides, too. Filing for Chapter 7 as a sole proprietor also means that all of your assets—both business and personal—may be sold and distributed by the trustee assigned to your case.
If you would like to quickly sell off assets and close your partnership or corporation, filing Chapter 7 bankruptcy is the best option for you. However, it’s important to note that partnership debts will not be discharged during a Chapter 7 bankruptcy.
Chapter 11 and Chapter 13 Bankruptcy
Sole proprietors who want to continue operating their business should consider filing for Chapter 13 bankruptcy, or Chapter 11 bankruptcy if your debts disqualify you from filing Chapter 13. Your debts will not be discharged if you file for either of these bankruptcies, but you will get to hold onto property and keep your business open.
Partnerships and corporations cannot file for Chapter 13 bankruptcy, but they can file for Chapter 11 bankruptcy. If you choose to file for Chapter 11 as a partnership or corporation, you will be ordered to pay a small sum of money every month towards your debts. Your company will remain in operation so you can continue to earn the money needed to make these payments.
Please contact Michael Davis at 303-758-5100 x 108 if you have questions about business bankruptcy.
You may also contact us by filling out our online form.