How Chapter 7 Bankruptcy Can Actually Keep You in Business in the FutureDallas Legal News
When many people think of bankruptcy, one of the first things they think is that this is going to be a detrimental process for their business, and possibly signify the end of their business. However, this is far from the truth. Filing for Chapter 7 bankruptcy actually helps many people remain in business who never thought that their business stood a second chance. Filing for Chapter 7 can actually help business owners become realistic about their financial situation and make some changes that will help them save their business and move forward in the future.
What You Might Have Heard
Many people who own their own business might have been told in the past that closing their business during the bankruptcy process is one of the best choices they could make. They are told this because they hear that it can prevent them from incurring other liabilities in the midst of their bankruptcy case that could lead to legal claims throughout the process. However, many people have everything they have ever worked for invested in their business and failure might not be an option. If you are operating with little assets or your likelihood between now and then of incurring other liabilities is slim, it might be important to continue running your business, but with some cuts.
Another way that Chapter 7 bankruptcy can be especially helpful to you is through the process known as “discharge.” The discharge part of the bankruptcy releases debtors from their personal liability and prevents the debt collectors from taking out any other collections against you. This gives you time to think about your business and going through the process of restructuring, which can help you get back on track with your business. Typically, in bankruptcy court, the discharge issue will play a role early on so that you can get back on your feet in a timely manner.
Staying in Business After Bankruptcy
You might be feeling a massive amount of debt as you work through the decrease in our economy, wondering where you will turn with your business that is now seemingly failing after years of doing so well. Filing for Chapter 7 bankruptcy might feel like a difficult and impossible prospect but it is actually a step that induces a lot of hope for many business owners. Bankruptcy can actually save your business, as it can protect you from debt that you’ve incurred, protect you from lawsuits and foreclosures, and keep the bill collectors away.
If you are going through bankruptcy, you might be able to file personal bankruptcy through Chapter 7 proceedings so that you can form a new corporation and keep your business in the end. Of course, there are steps that must be taken with the help of an experienced bankruptcy attorney so that you can make the most out of your case. At M.J. Watson & Associates, our Dallas bankruptcy attorney law firm is your go-to for many types of bankruptcy, including Chapter 11 and Chapter 7 bankruptcy proceedings that will help you protect your business during this difficult and life-changing time in your life. Contact a bankruptcy attorney you can trust today to get started with these proceedings and get your life back on track. We are waiting to hear from you at (214) 965-8240.