Boulder Business Bankruptcy Attorney
When business clients call our office, they are often uncertain whether they should file for personal bankruptcy, or the business should file. It depends on the situation, of course.
The first question is what type of entity was selected upon formation of the company. The owners of a corporation are generally not liable for the corporation's debts. Sole proprietors or members of a partnership, however, may be liable.
The founders or owners of the business may have pledged their personal assets as collateral for loans taken out for the business. In the long course of operation that some businesses have had, many loans will have been taken out, typically on different terms.
Chapter 7 Business Bankruptcy
All kinds of events can lead to decline in business, and when personal assets are vulnerable, the individual may wish to file for Chapter 13 bankruptcy protection. This can protect the home and other assets, as long as a payment plan can be approved by the court, and the individual can continue to make monthly payments. Chapter 7 personal bankruptcy may be available to you if you pass the bankruptcy means test.
Our attorneys can advise you and assist you in negotiating with creditors where possible.
Businesses often end up liquidating and filing for Chapter 7. The choice for businesses depends also on the kind of inventory and real estate held. If there are few marketable assets, liquidation can proceed promptly. The value of existing assets may be the subject of negotiation and attempted liquidation sale.
Our attorneys can help you weigh debt relief options including personal bankruptcy, business bankruptcy or in some cases both.
Schedule Your Initial Consultation Today
Contact our law office today to learn more about our legal services and how we can help you. We are available during regular business hours and by appointment evenings and weekends. You can reach our Boulder, Colorado lawyers by phone at 303-647-9475.
Business Bankruptcy FAQs
How will a bankruptcy of my business affect me personally?
Basically it is separate from you as an individual as long as liability for the business debts is not shared by you personally. However, if you are a co-signer on a loan, you may be liable for these debts.
What happens to remaining business assets?
Depending on the type of assets held, they may be sold at auction by the bankruptcy trustee. Owners may have the opportunity to purchase them. Often the owners understand the value and potential of assets and end up the winning bidder.
Why don't I just walk away from the business and its debts?
Don't underestimate the value of plant and equipment, and inventory. Principals and owners may also be legally liable for the business' debts. Our firm can help you through the process and take the strain off.
Will the business bankruptcy affect my personal credit?
No, assuming you did not pledge personal assets you cannot give up. Most sole proprietors are on the hook for the business' debts, and will be affected.
What is a "341" meeting?
This is a first meeting with your creditors. The bankruptcy trustee will ask about the business' finances and condition, and creditors can also ask questions.
Schedule Your FREE Consultation with St.Clair & Greschler, P.C., Today
Contact a Boulder, Colorado, lawyer today to schedule your free, no-commitment consultation with one of our experienced attorneys. We are available during regular business hours and by appointment evenings and weekends. Reach us online or by phone at 303-647-9475.
