How Will Bankruptcy Affect My Business?
A San Jose bankruptcy attorney discusses How Bankruptcy Might Affect You Business?
Business Information: Business Entity
The first question to ask is: what kind of business entity is involved in this case? Is it a corporation, a DBA, a partnership, etc? If your business is a sole proprietorship, and merely an extension of yourself, then the assets of your business are considered your own assets. This could be very important information to consider when deciding on which chapter of bankruptcy will be most beneficial to your particular situation.
Business Information: Will I lose my business if I file for a Chapter 7?
Remember, chapter 7 bankruptcy is also known as “liquidation.” Any assets that you own and/or property which is under your name is subject to be liquidated if the value of those assets/property exceeds the exemption limits. This is why it is important to determine whether your business assets are considered the assets of a separate entity (like a corporation) or the assets of yourself, as an individual (like a sole proprietorship).
Business Information: Will I lose my business if I file for a Chapter 13?
No, you will not lose any of your assets if you file for a Chapter 13. The Chapter 13 bankruptcy is known as a “reorganization.” Therefore, even if you have a sole proprietorship, and even if the business assets exceed the exemption limits, your business is not subject to being taken from you. Instead, you will have to pay the value of those non-exempt assets to unsecured creditors via your repayment plan.
Contact an attorney to get a better understanding of how your business may be affected by bankruptcy.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
