Q Can I File for Bankruptcy Because My Business Failed?
Small businesses account for 95% of all U.S. companies, and unfortunately one-third of new businesses fail in the first two-to-four years. Many business owners are forced to consider bankruptcy as a result.
The first thing you should consider before filing for bankruptcy is your outstanding liability. Do you owe money for leasing equipment or a point-of-sale system? Business credit card debt? Will you have to buy your way out of the lease where your business is located?
Did you personally guarantee any loans that you took out? In other words, can your lender come after your car, home or savings accounts, in addition to any of the business assets? If so, you may need to file a personal bankruptcy to protect yourself.
The most common type of bankruptcy for small business owners is Chapter 7, the so-called “liquidation” bankruptcy. Whether that kind of bankruptcy will solve your business debt problems depends on a number of factors, including how your business is legally organized, whether or not you are a sole proprietor, and the number and kind of assets you are trying to protect, like your house. The skilled bankruptcy attorneys at our office can help you sort through these issues and determine what is best for you and your business.
Get yourself on the road to a fresh start. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.