What a Business Needs to Know Before They File for Bankruptcy
By Michelle Howard
can face long periods with reduced or nearly no profits. A lot of small businesses cannot manage
the monthly business debt during these low profit periods. Maybe the business can maintain as
normal through one or two hard times but too many hits can make it unmanageable for the
business to keep up with all the payments to credit cards, signature loans, etc.
At that time the business owner may want to consider whether or not filing a personal bankruptcy
would be beneficial for the business as well as the owner.
If you own a business and think that you may need to file a bankruptcy, here are a few things to
Any business debt that you signed for personally can be included in a Chapter 7 or
Chapter 13 personal bankruptcy.
Filing a bankruptcy on business debt that you personally signed for will erase your
liability. However, if the business wanted to keep operating and restructure it’s business
debt, then the business may need to file it’s own bankruptcy.
For most small businesses, filing a personal bankruptcy will relieve enough financial
pressure for you to continue operating the business.
If you would like more information about filing a personal bankruptcy when you own a small
business, please contact Robert Eder Jr., Attorney’s office.