Solution Driven Representation

Assisting Businesses Undergoing Difficult Financial Challenges

In spite of the hard work people put into their businesses, some companies simply aren’t able to make it. If your business is in trouble and you are in debt and have creditors pursuing you, our business attorney who handles cases regarding Chapter 7 bankruptcy for businesses can help you. Our team will examine your business situation, talk with you about your goals going forward, and advise you about your most favorable legal options for getting out of your stressful debt situation.

Don’t hesitate to reach out to us for assistance. The sooner you get the help of an attorney when your business is failing and you owe money, the better your chances for achieving the most satisfactory resolution for your problem. Call (713) 666-1981 to speak with an experienced attorney at our Houston law firm.

Chapter 7 Bankruptcy for Small Business

According to the U.S. Bureau of Labor Statistics, approximately 20% of small businesses close their doors during their first year. Only about half of small businesses survive beyond five years and many more fail before making it to the 10-year mark. There are numerous reasons businesses don’t make it, from a lack of need in the marketplace for its products or services, to not having enough capital, to coming up against too much competition. But whatever the reason, when your small business is not doing well and you owe money to suppliers, banks, employees and others, our skilled Houston bankruptcy attorney can provide a solution to get you out of debt and help you move forward.

For some small businesses that are struggling, filing Chapter 7 bankruptcy may be a viable option. No two businesses are exactly the same. Whether you should file Chapter 7 bankruptcy, and whether it should be a business or personal filing, depends upon several factors, including the structure of your company, your business’s assets and debts, and whether you want to keep running your small business.

Our Houston business bankruptcy attorney Andrew Weisblatt is here to answer your questions and help you understand the Chapter 7 process and whether it makes sense in your situation. Call Weisblatt Law Firm to schedule a consultation at (713) 666-1981.

What is Chapter 7 Bankruptcy for a Business?

What is Chapter 7 bankruptcy for a business? It is a way of resolving debt problems for businesses by liquidating the company. Bankruptcy is filed in the name of the business entity. The bankruptcy court appoints a trustee to oversee selling assets and paying creditors. Companies that file Chapter 7 business bankruptcy don’t remain in operation.

A Chapter 7 bankruptcy can be a viable option when a company’s debts are so weighty that restructuring or reorganizing them doesn’t make sense.

A Chapter 7 business bankruptcy can be used for corporations, partnerships and sole proprietorships that are organized as limited liability companies. However, for corporations and partnerships, filing a Chapter 7 bankruptcy can be very complex because partners and owners might not agree on whether filing is the right option. Ownership shares, asset division, possible personal debt responsibility and other factors must all be taken into account. Also, a Chapter 7 bankruptcy filing for business does not discharge remaining debt so creditors can pursue repayment.

Bankruptcy is a very complicated process at any time and is even more so in business situations. When your business is in trouble, don’t take unnecessary chances with your financial future. Our skilled attorney can advise you based upon your individual circumstances whether a Chapter 7 bankruptcy is the best choice for you. He can also counsel you about other potential debt-relief options.

Can I Keep My Business if I File Chapter 7?

If you file a Chapter 7 business bankruptcy, your business will no longer be operational. However, if you are a sole proprietor who is not a limited liability company (LLC) and you want to get out from under debt and keep running your business, you may be able to do so by filing for personal bankruptcy. This option could pay off creditors and allow you to keep operating. If you file a personal Chapter 7 bankruptcy, it will typically wipe out both your personal and business debts.

However, there are some limited exceptions to having debt discharged. These include cases where debtors:

To qualify for a Chapter 7 personal bankruptcy, you must pass “the means test.” The means test uses a formula to discover whether your income is low enough to qualify for Chapter 7 bankruptcy. However, if your business debt is more than your personal debt, you don’t have to apply it, as the test concerns personal debt rather than business debt.

You can see that bankruptcy can be confusing and complex. When you have important questions for which you need sound answers, such as “Can I keep my business if I file Chapter 7,” speak with a seasoned bankruptcy attorney before making any decisions about what to do to resolve your debt problem. Every circumstance is different, and you need legal guidance that is tailored specifically to your business and personal situation.

Our experienced business bankruptcy attorney from Weisblatt Law Firm will review your circumstances and goals and advise you about the solution that is most advantageous in meeting your needs and put you on the road to financial relief. Call us today at (713) 666-1981.

Should I File Chapter 7 Bankruptcy for an LLC?

Every limited liability company has its own unique circumstances. Sometimes a Chapter 7 business bankruptcy can be feasible. But in other situations, a personal bankruptcy can be more advantageous. Sometimes limited liability company owners must do both to effectively get themselves out of debt.

Here are some things to consider when it comes to whether you should file Chapter 7 bankruptcy for an LLC and what kind:

Bankruptcy filings involve a lot of intricacies. A business attorney who is knowledgeable about bankruptcy for business will work to ensure that you achieve the best solution for your unique situation.

As your first step toward getting out from the pressure you are under from business debt, call Houston’s Weisblatt Law at (713) 666-1981 to set up a consultation about your case. We have helped thousands of business owners and have in-depth understanding of bankruptcy laws.

Talk to an Attorney about Additional Options for Getting Out of Business Debt

There are potentially other alternatives to a Chapter 7 bankruptcy for small businesses, depending upon the company’s assets and the level of debt. You may be eligible for debt restructuring or financial restructuring of your business outside of bankruptcy.

There are also other bankruptcy options that our attorney will explain to you:

Our skilled business lawyer will advise you about the most favorable option for you based on your unique situation.

You Need an Experienced Attorney to File a Chapter 7 Bankruptcy for a Business

Before you decide to file for Chapter 7 bankruptcy, get the help of a skilled bankruptcy for business attorney. You don’t want to make the wrong choice when it comes to the type of bankruptcy filing that would be best in your unique case. And you may not need to file for bankruptcy at all.

Filing for Chapter 7 bankruptcy has long-lasting ramifications. Our attorney who handles Chapter 7 bankruptcy for businesses can examine all the circumstances in your case and advise you of your most favorable options. Call the Weisblatt Law Firm PLLC in Houston at (713) 666-1981 to schedule a consultation.  We look forward to helping you.

 

Steven Hanson

What can I say? I will never hesitate to recommend this firm to anyone. Personable, professional, honest and diligent. Period.

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