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Protection For Small Business Owners In Chapter 7 Bankruptcy

Running a small business always involves financial risk. If your business is deep in debt with little hope of a turnaround, Chapter 7 bankruptcy can help insulate you from personal liability for those debts. Experienced legal counsel will help you take full advantage of the protections of bankruptcy.

Mahaffey & Associates, has helped business owners in Toledo and northwest Ohio liquidate under Chapter 7. One of our bankruptcy lawyers will sit down with you to analyze your debt situation and discuss your legal options. You can count on us for honest and attentive counsel.

Liquidating A Business Through Chapter 7 Bankruptcy

While large corporations sometimes survive under Chapter 11, reorganization seldom works for small businesses. If your business has been losing money quarter after quarter, Chapter 7 bankruptcy may be the most prudent option.

A small-business bankruptcy under Chapter 7 liquidates the business assets to satisfy creditors and mitigates personal liability for debts of the business. We have helped sole proprietors and general partners obtain bankruptcy relief as individuals. We have also helped owners of LLCs and small corporations file for bankruptcy on behalf of the business entity.

In some cases, equipment or tools of the trade are exempt. In some scenarios, owners are still on the hook for certain debts incurred, such as a personally guaranteed loan. Toledo attorney Ty Mahaffey has practiced bankruptcy law since 2002. He and other attorneys at our firm can help you assess if and when to liquidate under Chapter 7 for small businesses.

Additional Advantages Of Filing Chapter 7

In addition to those listed above, here are some benefits to pursuing Chapter 7 as a business owner:

  • It is the fastest type of bankruptcy to complete, and it also tends to be the most cost-effective
  • The bankruptcy trustee is charged with liquidating assets and paying off your creditors, meaning you don’t have to make these difficult decisions
  • If your business is almost entirely service-oriented (like a personal trainer, for instance), your business can likely survive Chapter 7 because you still have your most valuable asset: the service you provide
  • If you are a sole proprietor, filing Chapter 7 can help you eliminate both business debts and personal debts in the same case

There are pros and cons to any debt-relief option you choose. Therefore, before making any big decisions, it is wise to consult with an experienced attorney.

Contact Us To Discuss Your Options For Free

Call us today at 419-741-0111 or contact us online. We offer a free initial phone consultation. With a convenient office location in Sylvania, we can meet clients during regular business hours or on evenings and weekends by appointment.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.