Most business owners who believe they need to file a business bankruptcy for business debt they cannot pay in reality need to file a personal Chapter 7 bankruptcy or Chapter 13 Bankruptcy. A common scenario involves a business owner who, despite incorporating the business or creating a limited liability company, signs a personal guaranty to obtain a business loan. Even though the business is a limited liability company or corporation, the business owner, individually, has exposed himself or herself to personal liability from the business debt incurred. In order to avoid a lawsuit or judgment due to the business debt, the business owner may need the protection of an individual Chapter 7 or 13 to eliminate is his/her business debt.
Business Bankruptcy is not just an option for businesses that are shutting their doors but for any business unable to pay its business debts or the personal debts of its business owners. Because every business is unique, each business requires a thorough evaluation from our experienced Riverside Bankruptcy Attorney or Lawyer. Call us for a free bankruptcy consultation and with speak with our Bankruptcy Attorney to help you decide your best business option.