If you own a business and feel that your business loans and debts are getting out of hand then perhaps the best solution would be to file for business bankruptcy in Schaumburg. This isn’t the first course of action one should take, yet it does offer a light at the end of the tunnel. Running a business can become a very stressful ordeal if you begin to hit money troubles. Taking out loans can only keep you afloat for so long, so unless you begin making more money, you can be faced with losing the business and possibly being personally liable for your business loans. If you find yourself in this situation then there are a couple options you can take.
Option 1 – File for Chapter 7
Filing for chapter 7 is possible for small businesses owners, limited business, businesses in partnerships and any corporations, but have differences depending on situation.
Small business owners can file for a chapter 7 for their business or for themselves. In most cases, however, they file for both. Once filed, a chapter 7 will wipe all personal and business debts while also protecting your business assets from being sold off, enabling you to carry on operating while trying to sort out your financial issues.
Limited, partnerships and corporations who file for a chapter 7 will not have their debts wiped, but will make the process of selling off company assets that much easier. Filing for business bankruptcy in Schaumburg is never an easy thing, which is why under the chapter 7 you can leave the hard work to your attorney, leaving you to focus on other matters.
Option 2 – File for Chapter 13
Filing for chapter 13 makes it possible for small business owners to wipe their own personal debt. However under chapter 13, you cannot file your business for bankruptcy, only personal debt can be wiped.
Even though this option seems to restrict any business involvement, if you are the sole owner of your business then by wiping your own debt you can also secure your assets so they cannot be seized by any repo men or debt collectors. Chapter 13 allows the business owner to remove any liability from themselves and focuses on creating manageable repayments, rather than repossessions.
Unfortunately, limited, partnership, and corporation style business will not be able to file under chapter 13, only wipe all personal liability for the organizations. This process also takes a lot longer when filing for all aspects to go through, meaning the process can be drawn out and leave you in a state of limbo.
Afraid you might have to file for business bankruptcy in Schaumburg? Get some advice from Chicago Debt Solutions at website. You can also call them at 312-445-9106.
