Many owners of small businesses want to avoid the liquidation of the company that they've built using their resources and time. However, in certain situations, it's best to choose Chapter 7 bankruptcy to protect your personal interests. Usually overlooked as a medium to deal with business debt, Chapter 7 bankruptcy can be a helpful tool during financial emergency.
The difference between Chapter 7 bankruptcy for individuals and Chapter 7 bankruptcy for businesses structured as partnerships, corporations, and other non-individual entities is that business entity and corporate debt are not discharged. This makes it less beneficial for businesses other than sole proprietorships. At the Law Offices of Steven K. Brown, we'll help you find the best way to solve your business's debt situation using Chapter 7 bankruptcy. Our St. Louis business Chapter 7 bankruptcy attorney has the right experience to suit your needs.
Shareholders and principals of businesses that are organized as LLCs, corporations or other entities can benefit from Chapter 7 bankruptcy in multiple ways. You as an individual or a business entity debtor do not need to meet the means test for Chapter 7 bankruptcy if a major part of the debt is business related. You can also file an individual Chapter 7 bankruptcy if your business does not have substantial assets to pursue discharge of your personal liability on business-related debt and consumer debt. This will allow the Chapter 7 trustee to wind up the business or let it die a natural death.