If you own a business and feel overwhelmed by debt, you need to speak to a legal representative. Too much commercial debt can affect your professional reputation. Therefore, it is imperative that you speak to a lawyer right away.
Therefore, make a resolution to contact a commercial bankruptcy lawyer in Fort Wayne, IN about your financial situation. Doing so will make it possible for you to make better future business decisions. You will need to speak to him or her, as you can file one of four types of bankruptcy if you are a business.
Are You a Sole Proprietor?
While a business that is closing normally files a Chapter 7 bankruptcy, businesses that wish to remain open usually file for Chapter 11, Chapter 12, or Chapter 13 bankruptcy. If you are a sole proprietor, you can speak to a commercial bankruptcy lawyer about filing Chapter 13. Because Chapter 13 includes a business owner’s personal finances, this is the preferred bankruptcy to choose if you are set up this way.
Chapter 11 Bankruptcy
Chapter 11 is an option if you do not plan to include your personal finances in the plan. A commercial bankruptcy lawyer will help you with a disclosure after the filing. This disclosure lists a business’s income, debts, and assets. The reorganization plan maintains some of the business’s major assets while eliminating or reducing some of the debt.
By taking this approach, a business can pay its creditors from the monthly profit it makes. This plan is often recommended for larger companies that have been in business for some time. However, it can be filed by most entities.
Filing Chapter 12
A Chapter 12 bankruptcy is similar to a Chapter 13 bankruptcy. However, this plan is designed to be filed by commercial fishermen or farmers. This plan permits a business to stay operational through debt restructuring. You can learn more about bankruptcy filings of this kind when you contact Fred Wehrwin, P.C. Work with a competent legal specialist in this area. You can also connect them on Facebook.
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