Debt Relief For Ohio Business Owners
If you are a business owner facing insurmountable debt, you are not alone. Challenging economic times are arguably more difficult for businesses than for individuals, making the need for debt relief even greater for businesses.
We can help. At Mahaffey & Associates, our attorneys can step in to help you find a fresh start and get the debt relief you need through bankruptcy.
We Provide The Help You Need
Our lawyers know that each client is different. There is no single debt relief solution for every client. We give our clients individualized, personally tailored legal solutions. We can help you with every aspect of your case, including:
- Claiming debt: Some debt will be personal and some will be business. We can help you decide which debts to claim individually and which to claim for the business. We can advise you about how to claim your debts in the most advantageous way.
- How to file: If you are a business owner, you should be able to keep your business and personal interests separate by filing for business or personal bankruptcy. There are advantages and disadvantages to filing for Chapter 11 business bankruptcy compared to some forms of personal bankruptcy like Chapter 7 or Chapter 13. We can help you understand your options when it comes to bankruptcy so that you can make the decision that is right for you.
- The entire legal process: We will help you with all of the calculations, the filing, the paperwork, the hearings and every other aspect of the bankruptcy proceedings.
We work with a wide range of businesses, including investors and investment companies that possess investment properties. We can advise you regarding the complications of rental property in business bankruptcy, helping you identify which legal options are right for your specific situation.
What Are Your Bankruptcy Options As A Business Owner?
There are numerous options available depending on factors like the size, nature and profitability of your business. They include:
- Chapter 7: Your business assets will be liquidated to repay creditors and the business will almost certainly need to dissolve. Best for business owners who feel they cannot continue to operate.
- Chapter 13: Your debts will be reorganized into a payment plan lasting about three to five years. Only sole proprietorships can utilize Chapter 13 as it is meant for individual debtors.
- Chapter 11: This is also a reorganization bankruptcy meant to allow businesses to continue to operate and survive bankruptcy. This is a complex and expensive option, which means it is typically only available to larger corporations that have debts but are also profitable.
- Chapter 11, Subchapter 5: This is a streamlined version of the standard Chapter 11 that is available to smaller businesses. It focuses on reorganization/repayment while also discharging some unsecured debt. The business can continue to operate during and after bankruptcy if the process can be completed successfully.
Our knowledgeable attorneys can help you choose the right option for your business and your overall goals.
How Business Bankruptcy Differs From Consumer (Personal) Bankruptcy
In the case of sole proprietorships, there is almost no difference between personal and business bankruptcy because the owner’s personal and business finances are inseparable. For larger businesses like LLCs and corporations, however, there are some important differences, two of which are noted below.
One difference is the “means test.” When individuals want to file Chapter 7, they need to pass a means test that measures their income and expenses. If they are deemed ineligible, they will need to file Chapter 13 instead. There is no means test requirement in business bankruptcy.
There are also differences in how debtors and creditors interact. In a business bankruptcy, for instance, business contracts can be canceled through mutual agreement between the business and the creditor. While personal debts can be discharged through Chapter 7, not all debts are eligible to be discharged (or canceled). These include student loans, child support and certain tax obligations.
Contact Toledo Business Debt Consolidation Attorneys Today
Call us today at 419-741-0111 or contact us online for a free consultation. We meet clients at our Sylvania office, and we make evenings and weekends available by appointment.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.