No business owner wants to face the prospect of closing down their business permanently. Unfortunately, however, this is sometimes the only option they have if they want to protect their personal financial security. That said, if you’re a business owner and you’re facing significant financial hardship, Chapter 7 bankruptcy may be the best option for you. Read on and contact a dedicated Memphis Chapter 7 bankruptcy lawyer from the Arnold Law Firm today to learn more about Chapter 7 bankruptcy and whether it’s worth considering.
Here at the Arnold Law Firm, our job is to give you options and best protect your financial future. Some businesses that have the potential to remain profitable but are currently struggling financially may benefit from Chapter 13 bankruptcy, while businesses that are not profitable and likely will not become profitable may be best suited for Chapter 7 bankruptcy.
The first thing you should understand is that Chapter 7 bankruptcy is known as liquidation bankruptcy. This means that once you file, various assets will be liquidated, and your creditor will sell those assets off to help repay the debt you owe. For many struggling business owners, this is a sigh of relief. Some of the pros of filing for Chapter 7 business bankruptcy are as follows:
Chapter 7 bankruptcy will discharge most debts, including credit card debt, unpaid utility bills, personal loans, and more.
You may keep your home, vehicle, and many other possessions.
It is an orderly way to clear away your debt, close down your business, and move on with your life.
Though these are all good reasons to file for Chapter 7 bankruptcy, as previously mentioned, your business will most likely close down. This is the primary drawback of filing Chapter 7.
In general, the Chapter 7 bankruptcy process is as follows:
Typically, a Chapter 7 bankruptcy case reaches its conclusion after roughly three or four months. If you have any further questions, speak with a Memphis, TN business bankruptcy lawyer today.
The Arnold Law Firm is dedicated to providing competent legal services to business owners throughout the state of Tennessee. If you need help through the process, please don’t hesitate to contact us online to schedule your initial consultation with our dedicated legal team.