When a business owner encounters a period of financial difficulty, the ramifications can be widespread. Many Ohio owners will do everything in their power to avoid seeking bankruptcy protection until matters have deteriorated significantly. By that point, some owners have sustained damage to their personal finances, as well. In such cases, individuals may need to seek both business bankruptcy and Chapter 13 bankruptcy.
It is not unusual for a business owner to invest a significant portion of his or her own savings into starting or maintaining a business venture. When times are good, that investment is often repaid in full. However, there are instances in which money that is put into a business is not sufficient to turn the company around. In such cases, the owner may have overextended his or her own finances and may need to turn to bankruptcy as a solution.
Just as business bankruptcy is a change for restructuring, so too is Chapter 13 bankruptcy for individuals. A Chapter 13 filing will allow an individual to retain many or all of his or her assets, while working to repay debt in a manner that is fair and balanced. While it may take a significant investment of time to complete that process, Chapter 13 offers a chance to reorganize debt and make repayment a real possibility.
For those in Ohio who are considering filing for a business bankruptcy, it may be worthwhile to think about whether a personal Chapter 13 bankruptcy might also be a wise move to make. Both options allow for a restructuring of debt, and a chance to regain financial stability. In today's ever-shifting economic climate, that opportunity is a welcome relief for many.
Source: The Huffington Post, "Life After Bankruptcy: When and How Your Business Can Get Its Financial Groove Back", Jared Hecht, Sept. 2, 2015