You didn’t start your business expecting to become a financial survivalist. But if you’re a small business owner in Minneapolis right now, it probably feels like that’s the job.
Between pandemic-era loans coming due, inflation that hasn’t cooled, and revenue that’s just not keeping pace, more local entrepreneurs are asking tough questions:
What happens if I can’t pay this back?
What if I fall behind on taxes?
Do I have to shut down?
Here’s the part many don’t realize: you have options—and bankruptcy might be one of them. The right move could be the one that keeps your business alive.
You’re Not Alone—and You’re Not Failing
If your startup or small business took out a PPP loan, EIDL, or other emergency funding between 2020 and 2022, you’re not the only one struggling with repayments now. And with interest rates high and consumer spending stretched thin, even strong local businesses—from food trucks to tech startups—are hitting walls in 2025.
That’s not failure. That’s reality. And it’s one that a Minneapolis business bankruptcy attorney can help you face strategically, not reactively.
How Business Bankruptcy Works (And Why It’s Not the End)
Bankruptcy doesn’t automatically mean shuttering your company or laying off your team. In many cases, it’s the opposite—it’s about creating breathing room so you can stay in the game.
Depending on your business structure (LLC, sole proprietorship, etc.) and the kind of debt you’ve taken on, there are options:
- Chapter 7 can help you close cleanly and resolve personal guarantees if winding down is the best path.
- Chapter 11 Subchapter V offers a streamlined, less expensive way for small businesses to reorganize and keep operating.
- Chapter 13 might help if you’re a sole proprietor with personal and business finances tightly linked.
The key? Don’t guess. Talk to someone who knows the difference—and knows how local courts handle business filings in Hennepin and surrounding counties.
The Local Edge: Why Minneapolis Legal Help Matters
Bankruptcy isn’t just a bunch of forms. It’s a process with legal, financial, and emotional weight. A national debt relief company won’t know how the Minneapolis business scene operates—or how to craft a plan that fits your reality.
Hoverson Law Offices, P.A. has worked with Minneapolis entrepreneurs from all walks—retailers, real estate agents, tradespeople, freelancers, tech founders. They don’t just know bankruptcy law—they know how to listen, adapt, and offer a clear path forward based on your unique business challenges.
And in a city where property costs, payroll, and overhead can change fast, that local experience counts.
There’s Still a Road Forward
Bankruptcy might not be the first thing you think of when planning a comeback—but it can be a powerful step toward one. It can stop lawsuits. Pause IRS action. Help you renegotiate leases or vendor contracts. Most importantly, it can help you make decisions before you’re forced into a corner.
Owning a business means being resourceful, even when it’s uncomfortable. If you’re carrying six-figure debt and white-knuckling your way through monthly expenses, the proactive move might be to talk to a Minneapolis business bankruptcy attorney now—not later.
Running a Business Is Hard. Getting Legal Help Shouldn’t Be.
If your small business is struggling to keep up with pandemic loan repayments, rising costs, or old debt that just won’t budge, it’s time to ask what’s possible.
Hoverson Law Offices, P.A. can help you explore your options, protect what you’ve built, and figure out a real strategy—whether that means restructuring or starting fresh.
Visit hoversonlaw.com to set up a confidential consultation with a Minneapolis business bankruptcy attorney who understands what’s at stake.
Your business matters. Your peace of mind matters too. Let’s protect both.
