You’ve decided that the business bankruptcy process is best for you due to circumstances that led to a distressing financial situation and risked your business as it stands. In some cases, you might choose business bankruptcy because you plan on restructuring your business or because you want to finish the business off completely. No matter what you believe is best for you, you are almost positive to have a variety of questions that only a business bankruptcy attorney could answer. Today, we want to focus on the many common questions many individuals bring to the table every year.
Business Bankruptcy FAQ
Which business bankruptcy is best for me? The truth is that there are many types of business bankruptcy and so you have many options. The two most popular that we will focus on are Chapter 7 and Chapter 13, which are entirely different from one another in many ways.
When it comes to Chapter 7, you are essentially allowing a trustee to take any property you own that is not exempt. When you do so, your debts will be wipes out except for aspects that are not permitted like child support, back taxes, student loans, and more. When it comes to Chapter 13, however, you do not forfeit your right to any of your property. However, you have to enter into a repayment plan so that you can pay off the debts that you still owe.
Speaking with an attorney is one of the best ways that you can put your options into perspective. Your attorney will be able to show you the differences between all of the business bankruptcy options and tell you why each one is a good choice for you, or why it is not.
How expensive is it to file? There are fees associated with the business bankruptcy process. For instance, if you choose to file Chapter 7, you could find that just the filing alone is $310. Your attorney will also typically charge you a fee to handle your case. If complications come up along the way, you might find that you are sinking money into many different aspects that you never accounted for, which is why it is important for you to be completely sure of your decision to move forward with your case.
What are some issues I might run into when I file? There are some issues that individuals tend to run into when they file for business bankruptcy. For instance, you might find that your income is too high for the bankruptcy you choose to file for, or you might have had business transactions that appear questionable and you will have to explain them. Because of this, having an attorney will offer you the best protection.
Will an attorney help me understand how long the process will take? Yes, an attorney will walk you through the process and explain what you should expect every step of the way. An attorney will understand how long it will take to file and will be able to describe every aspect of the process.
How a Business Bankruptcy Attorney Can Help You
At MJ Watson & Associates, our bankruptcy attorneys have experience in many types of bankruptcy in Texas and are willing to help you through this stressful and challenging process. We understand that you might be feeling lost and confused if this is the first time that you filed, and you have many rights. Please reach out to us for the help you deserve at 817-877-2861.