There are countless entrepreneurs in the state of Wisconsin. Starting your own business, however, is not easy work. It takes time, dedication and a substantial amount of financial investment up front. As you work to make your business lucrative, you still have to keep up with other day-to-day expenses. If your business — like most — doesn’t start making money right away, debt can quickly pile up.
Finding yourself faced with overwhelming debt is extremely stressful, especially when you have a family to support on top of it all. Although bankruptcy may be in the back of your mind, you might worry about how it could affect your life — particularly, whether you will lose your home. Bankruptcy, however, can be a very useful tool for reducing debt quickly, and many people can keep most of their property.
Assuming your business is owned personally and not by a larger corporation, personal bankruptcy may be the right debt relief option for you. In previous posts we have discussed both Chapter 7 and Chapter 13 bankruptcy. Chapter 13 allows you to create a repayment plan that is within your means. In Chapter 7, the majority of your debt will be forgiven. Your income and the type of debt you have will help determine which option makes sense for you.
Facing overwhelming debt is a frightening situation, but it is important to know that there are ways out. The best way to understand if bankruptcy is the right option for you is to speak with an experienced bankruptcy attorney.
Source: The Huffington Post, “Should We File Bankruptcy Because of Business Debts?” Steve Rhode, March 30, 2015