Throughout history many people have made the courageous decision to work for themselves and start businesses. Owning a business is a lot of work and comes with a lot of risks. Many have tried their hardest but have not been able to continuously manage their businesses is changing environments and still turn a profit. A downturn in the economy, high employee turnover, the inability to borrow money, or changes in management are all things that may contribute to the downfall of a business. People who have a lot of business debt should consider finding a Business Bankruptcy Attorney in Richmond to find out their options when it comes to filing for bankruptcy.
The type of bankruptcy a person can file will depend on the structure of their business. A sole proprietor may file for personal bankruptcy and business bankruptcy since the business bankruptcy does not get rid of personal liability for debts of a business. A limited liability company, corporation, or partnership may file for Chapter 7. A trustee will be responsible for selling business assets and paying the business’s creditors. Since assets have to be turned over, a business may not be able to continue to operate after filing for Chapter 7. The business debts are not discharged under a Chapter 7 bankruptcy.
The owner or owners of a business have to know when to throw in the towel if the business is not performing well. Having a consultation with a Business Bankruptcy Attorney in Richmond is the best way for them to determine if filing bankruptcy is an option that they should consider. There may be situations involved that would make them good candidates for bankruptcy or they may find that they are ineligible. Working with an attorney that has experience helping businesses get through the bankruptcy process can help ensure that the proceedings will be completed in an efficient manner. There will be lots of paperwork that will have to be completed and submitted to a court. A competent attorney at Chandler Pecoraro PLC Ricmond will make sure that everything that needs to be submitted is turned in and filled out properly.
