Vero Beach Business Bankruptcy Attorney
There are nearly 3 million small businesses in Florida and they employee millions of people in Florida. If you are a business owner and your company is struggling with high amounts of debt, you may have considered bankruptcy. You are likely worried about how bankruptcy will affect your business, and you may also worry about the future of the people you employ.
Depending on how your business is structured, you may be able to file a Chapter 7, 11, or 13 bankruptcy. Most of the time, Chapters 7 and 13 are reserved for individuals while businesses usually file Chapter 11. Our Vero Beach business bankruptcy attorney can help you determine which type of bankruptcy is right for you, and help you through the appropriate process.
How Will Filing Chapter 7 Affect Your Business?
Corporations and LLCs rarely file Chapter 7 because it results in the closure of the business. Chapter 7 is also commonly known as a liquidation bankruptcy due to the fact that during the process, a borrower’s assets are sold and the proceeds are distributed among the creditors the debtor owes. A bankruptcy trustee is assigned early in the case and it is the trustee who is responsible for selling the business, along with any assets it owns.
In some Chapter 7 cases, there are limited exemptions for assets that are crucial to a person’s work, or for “tools of the trade.” For sole proprietors who offer a very specific service, this type of bankruptcy is sometimes the best option.
How Will Filing Chapter 13 Affect Your Business?
Chapter 13 bankruptcies are reserved solely for individuals. Many times, this means owners of LLCs and other types of companies are not eligible to file. Still, for those who own small businesses or who are sole proprietors, Chapter 13 can still be a viable option.
Chapter 13 bankruptcy is usually filed by individuals who have higher incomes and large estates they wish to protect. As such, if you are considered personally responsible for repaying debts related to your business, a Chapter 13 bankruptcy may be a good option.
How Will Filing Chapter 11 Affect Your Business?
Most business bankruptcies are filed under Chapter 11. This type of bankruptcy is usually reserved for businesses but individuals with very high levels of debt may also find Chapter 11 useful. Chapter 11 bankruptcy is a very complex process, and it is also one of the most expensive types of bankruptcy a person could file. Still, due to the fact that business owners can continue to run their company during the process, and be shielded from debt collection attempts, many business owners find it the best option for them. During a Chapter 11, your business’ debts are not actually discharged but instead, they are restructured into a payment plan.
Our Business Bankruptcy Attorney in Vero Beach is Here to Help
If you are thinking of filing bankruptcy on behalf of your business, our Vero Beach business bankruptcy attorney at Kelley, Fulton, Kaplan & Eller can help with your case. Call us today at 561-264-6850 or contact us online to schedule a consultation and to learn more.