Chapter 13 Bankruptcy Can Help a Small Business Recover from Economic Hardship

An Opportunity to Recover from an Economic Drought

The environment we live in is chaotic, causing certain detrimental occurrences to be outside of our control. Chapter 13 Bankruptcy can help a business owner recover from temporary uncontrollable financial devastation by putting together a Federal Court Ordered 5-Year Repayment Plan.

Keeping Property Essential to Business Activities

Many small business owners cannot file for Chapter 7 Bankruptcy without losing the means to continue operations. Chapter 13 Bankruptcy allows petitioners to keep some or all business related property, so long as the value of that property is paid back to unsecured creditors over a five-year payment plan.

Some Debt may be Discharged without Tax Liability

Unsecured debt exceeding the petitioner’s net worth is discharged. In addition, a petitioner is not required to pay back the value of any property that is exempt under state law (in some cases and states exemptions under federal law apply).

Keep Good Records

It is the Bankruptcy Trustee’s duty to conduct a complete and thorough analysis of whether the repayment plan proposed is both feasible and in good faith. If a business owner cannot provide adequate records (i.e. profit-loss statements, income tax statements, bank statements, etc.), then the Bankruptcy Trustee cannot adhere to their duty, and the plan will not be confirmed.

Chapter 13 Bankruptcy is NOT a D.I.Y. Project

There is a significant amount of legal code dedicated to the process of Bankruptcy, and an even more significant amount of case law interpreting that code. Only a local professional who regularly practices Bankruptcy will possess an understanding of how the law is applied in your area. In addition to understanding the local nuances, the Bankruptcy Attorney in your area will possess a developed rapport with the local personnel (Bankruptcy Trustee, Bankruptcy Judge, and their respective staff).

Free Consultation

Call our office for a free consultation to determine if Chapter 13 Bankruptcy can be the solution to an otherwise unsolvable financial problem.

Bankruptcy is a driven practice for an experienced debt relief attorney, like those at Smith Law, Ltd. Because there are so many nuances in the application of bankruptcy law, it is inadvisable that an individual not experienced or knowledgeable about Title 11 of the U.S. Code, and how the courts have interpreted those laws, to file bankruptcy without the assistance of counsel.

If you would like to speak to experienced debt relief attorneys, please contact Smith Law, Ltd.

We are a debt relief agency. We help people file for bankruptcy relief.