If your business is in distress and you have creditors breathing down your neck threatening to take legal action against you, bankruptcy may be the best solution. When a business owner files bankruptcy it can be devastating to their personal finances. That’s why it’s important to hire a bankruptcy attorney. A business bankruptcy lawyer can handle your personal finances and salvage your assets. After careful review, an attorney will be able to tell you what type of bankruptcy to file that will have the least impact on your personal assets and liabilities.The type of bankruptcy to file and how much money your creditors will be able to collect depends on several factors. If you are a sole proprietor, you and your business are legally one entity. Which means the business owner is liable for all debts the business accrued. Creditors will try to take your personal assets. If your business is a corporation, the majority of the time your personal assets are protected from business creditors.A business bankruptcy attorney will stop creditors from foreclosing on your home or other personal property. The process is called an automatic stay and it will buy the business owner some time. Unsecured credit such as credit card bills and lawsuit judgments will be wiped away. If you borrowed money using your home or vehicle as collateral the creditor is entitled to take the property even though bankruptcy is filed. However, some of the equity in your home may be salvaged. If you really want to keep your home your attorney may decide to file chapter 13 which allows you to repay the debt over a five-year period and enables you to keep your home. Many business owners panic and start taking matters into their own hands. Many people take out an extra mortgage on their home getting themselves deeper in debt. Others sell their personal property to satisfy debts and avoid bankruptcy, only to discover that bankruptcy can no longer be avoided. So if you’re a business owner struggling to pay your bills don’t go through it alone, contact a business bankruptcy attorney. They will help you save your property and lead you to the road to recovery.
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- The Importance of Hiring a Chapter 13 Bankruptcy Attorney in Minneapolis