St. Louis Business Chapter 13 Bankruptcy Lawyer

St. Louis Small Business Debt Reorganization Lawyer

Chapter 13 bankruptcy offers an alternative means of reorganizing business debt to Chapter 11 bankruptcy. In Chapter 13 business bankruptcy you have a similar three to five year debt repayment plan as in Chapter 13 for individuals. Unsecured creditors are paid a percentage of the debt they are owed.

There are two types of Chapter 13 bankruptcy cases that may be useful for the self employed and small business owners:

  • The standard individual Chapter 13 bankruptcy case
  • The "debtor engaged in business" Chapter 13 bankruptcy case.

The standard individual Chapter 13 bankruptcy case may be appropriate for a self employed person in a service business who works out of his home, has little in the way of business assets, has no employees and whose creditors do not extend trade credit to the business. A hair stylist, day care provider, self employed carpenter and similarly situated sole proprietors might avail themselves of this approach. A Chapter 13 bankruptcy "debtor engaged in business" case may be helpful to a small corporation/LLC owner or sole proprietor where a Chapter 11 bankruptcy, with its expense, complexity and ongoing challenges may not be the most practical approach for the principal owner of this type of small business.

At the Law Offices of Steven K. Brown, our St. Louis business chapter 13 bankruptcy attorney brings over 35 years of experience to the aid of each of our small business clients. We utilize that experience to help create a plan to move our business clients beyond debt using all appropriate processes. We will work to understand your true goals beyond debt reduction and work to make those further goals a part of the plan that we craft for you and your business.

Business Chapter 13 Bankruptcy Versus Chapter 11 Bankruptcy

Chapter 13 offers certain advantages for small business owners over Chapter 11. One significant advantage is avoiding the possibility of having to cede stewardship of the business to an outside party. Chapter 13 bankruptcy can offer cost savings over Chapter 11. Corporations, partnerships, limited liability companies and other non-individual debtors are not eligible to file under Chapter 13. And, there are limits on the amount of unsecured and secured debt a Chapter 13 debtor may have. Those limits change from time to time, but in 2010 they are: noncontingent, liquidated, unsecured debts of less than $336,900 and noncontingent, liquidated, secured debts of less than $1,010,650.

Is There an Advantage to Filing Personal Chapter 13 Bankruptcy for Business Debt?

Depending on the circumstances that you and your business are currently experiencing, Chapter 13 may be most beneficial. Chapter 13 is almost always preferable to Chapter 11 for a qualifying small business debtor who wishes to remain in business. The legal expenses for a Chapter 13 case are normally only a fraction of those for a Chapter 11 case. In circumstances where the business does not have significant assets, a business owner may file for personal Chapter 13 protection, listing his or her interest in the business as an asset. This may offer an expedited way of dealing with your personal liability for business debt.

Contact Us

For bankruptcy representation that will put your business first and help you get the most benefit you possibly can from the Chapter 13 bankruptcy process, call 314-732-0476, toll free at 888-894-8810 or simply contact us online to schedule your free initial consultation with our Missouri bankruptcy lawyer. There is a charge for business related bankruptcy consultation which will be determined at your first meeting.

DISCLAIMER:

We are a Debt Relief Agency under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 as defined in 11 U.S.C.S. § 101(12A) of the Bankruptcy Code.
This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent counsel for advice on any legal matter.

DISCLAIMER:

We are a Debt Relief Agency under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 as defined in 11 U.S.C.S. § 101(12A) of the Bankruptcy Code.
This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent counsel for advice on any legal matter.