Protecting Your Personal Assets From Business Debts
A failing business can present difficult choices for the owner. Should you file Chapter 7 bankruptcy, file Chapter 11 bankruptcy or simply let your business dissolve? No one should make this decision without good legal advice.
At the law firm of Michael M. Malinowski PLC in Grand Rapids, Michigan, I offer a free initial consultation to answer your questions about bankruptcy protection for business owners. I am a lawyer with 25 years of experience representing small business owners in western Michigan.
Should My Business File Chapter 7 Bankruptcy?
For most businesses, it doesn't make sense to file Chapter 7 bankruptcy if your business won't continue. As a general rule, file bankruptcy only if your business has assets and money that you want to direct to debts you would be personally responsible for.
Should I File Chapter 11 Bankruptcy?
You should file Chapter 11 bankruptcy only if your business has enough prospects to become profitable in the near future. Can you afford the time and cost to turn your business around? This is the gut check you need to perform before filing Chapter 11 bankruptcy.
Am I Personally Responsible for Business Debts?
There are certain debts that the business owner is responsible for, such as employment taxes, sales taxes, 941 and FICA taxes.
You are also responsible for debts you guarantee personally. Many banks, business credit cards and suppliers extend credit to small businesses only if the owner personally guarantees the debt. For this reason, many business owners are forced to file Chapter 7 bankruptcy to discharge personal debts from the business.
Free Bankruptcy Attorney Consultation
You don't have to live with the stress that business debt can cause. For a free consultation about bankruptcy protection for business owners, call me, lawyer Mike Malinowski, at 888-339-6017 or fill out our contact form on this Web site. My law office is in Grand Rapids, Michigan.
