Owning and operating a small business in Wisconsin is not always easy. Small business owners may experience financial troubles occasionally, but there are times when circumstances are quite serious. If your business has accumulated a lot of debt and is not able to manage expenses and payments, you may consider the benefits of filing for bankruptcy for your small business.
Small businesses can file for Chapter 7, Chapter 13 or Chapter 11 bankruptcy. The right choice for you depends on the details of your individual situation, such as the types of debt you owe and other factors. If you believe that taking this step is the best option for you and your business, you may find it useful to seek guidance as you make this important decision.
Which chapter of bankruptcy is right for your business?
The decision to file for bankruptcy is not an easy one to make, however, it could offer you the opportunity to effectively confront your debt and potentially shield the future of your business. Your bankruptcy options include the following:
- Chapter 7 bankruptcy: With this option, some business assets could be sold for the repayment of some debts. You will have to attend a meeting with your creditors, and the process will take a few months to complete.
- Chapter 13 bankruptcy: You must file a bankruptcy plan for repayment that is subject to the approval of the bankruptcy court. You will make regular payments until the requirements of your plan are complete.
- Chapter 11 bankruptcy: You will have a plan that outlines the reorganization and repayment of your debt, and your creditors will get to vote on it. Chapter 11 is one of the most popular choices for businesses facing overwhelming debt.
If your business could benefit from relief from unmanageable debt and phone calls from creditors, you may consider one of the above options for your business.
Navigating the bankruptcy process
The bankruptcy process can be complex, and it’s helpful to have experienced guidance as you navigate this process. From meeting with creditors to ensuring you meet the requirements of your repayment plan, you don’t have to do it alone.
Bankruptcy could be the right option to let your business get back on its feet and help you move on to a more stable and prosperous financial future. Before you make any important financial or legal decisions about your business, it’s prudent to carefully weigh all of your options.