Tag: Bankruptcy:

Small Business Bankruptcy, business bankruptcy.#Business #bankruptcy

Small Business Bankruptcy

If your small business is struggling with debt, bankruptcy may provide some relief. Whether bankruptcy can help depends on a number of factors, including:

  • the legal form of your business — for example, is your business a sole proprietorship, general partnership, corporation, or limited liability company?
  • whether you are personally liable for business debts
  • whether you want to close your business or keep it running, and
  • how much and what types of debts you have.

In this area, you can find information on using Chapter 7, Chapter 13, and Chapter 11 bankruptcy for business debts, how to figure out if you are personally liable for business debts, whether you can get credit or loans after filing bankruptcy for your business, and whether there are nonbankruptcy alternatives to deal with business debt in your situation.

Overview Articles

If your small business has a significant amount of debt, bankruptcy can help you reorganize your debts to save your business, wipe out your personal liability for business debts, or simply liquidate the company.

If you are a struggling small business owner, filing for Chapter 7 bankruptcy may help save your business or provide a simple way to liquidate it.

If you re a small business owner struggling with debt, Chapter 13 bankruptcy may help you reorganize your debts and save your business.

With Chapter 11 bankruptcy, a small business can restructure and eliminate debts and continue in operation.

Bankruptcy can help you whether you wish to continue or shut down your business. However, which type of bankruptcy can benefit you the most depends on your business structure and if you intend to stay in business.

Personal Liability for Business Debt

Whether you can be held personally liable for the debts of your business depends on the structure of your business and how it was formed.

Whether your spouse is liable for your business debts depends on how your business is organized and how the debt was incurred.

More Articles: Chapter 7, Chapter 11 Chapter 13

Not sure which type of bankruptcy is best for your small business? Learn the pros and cons of Chapter 7 and Chapter 13 bankruptcy.

Learn about the differences between Chapter 11 and Chapter 13 business bankruptcies.

Your Credit After a Business Bankruptcy

There is nothing in the bankruptcy law that prohibits you from starting a new business after bankruptcy. In fact, you might be able to apply some lessons learned from your prior financial problems to keep you out of trouble in the new business.

You can probably get a business loan after bankruptcy, but it will be more difficult. Learn what steps to take to increase your chances of getting a loan.

Whether a business bankruptcy will affect your personal credit depends on whether you are personally liable for the business debt under the law.

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Business Bankruptcy What To Expect? Get Free Advice, business bankruptcy.#Business #bankruptcy

Business bankruptcy

Business Bankruptcy What To Expect?

Most people when they think business bankruptcy really mean, company bankruptcy, company liquidation or company insolvency, pre-pack administration. The word bankruptcy only applies to individuals under English Law… So keep reading to find out more on business bankruptcy, continue reading…

What is Business Bankruptcy?

Any advice you get on this page relates to Limited Companies.

Business Bankruptcy under UK law does not exist. The word bankruptcy only applies to individuals and not to limited companies. If you are a sole trader or in a partnership then you would need to declare personal bankruptcy if you are unable to keep up with your personal and business debts and liabilities.

In most cases when people say business bankruptcy they really mean company liquidation, company administration, a pre-pack administration of a company or a CVA company voluntary arrangement.

So Whats a Company Insolvency?

  • Did you know you can protect your business from creditors under the insolvency laws with the help of an Insolvency Auditor or a turnaround practitioner?
  • The insolvency laws are there to protect the creditors as well as the company directors just like YOU, bet you were not aware of that?

So How Can Insolvency Help My Company, with it’s Debts?

  • Are you simply looking to close your company down and wish to walk away?
  • Or are you looking to continue in business but the debts are holding you back?

You Can Close Your Company Walk Away

First, we will deal with closing your company down and you simply walking away, ok?

If the company has debts there are two ways to close the company down. One is to wait for a creditor/s to petition to wind the company up, known as a compulsory liquidation.

Two, where you can employ an insolvency practitioner to liquidate your company. This is known as a Creditors Voluntary Liquidation.

Advantages Disadvantages of Compulsory Liquidation

Advantage of the compulsory liquidation is it costs you nothing because the creditors have to pay for all the court costs and other costs associated with it.

Disadvantage is, you are not in the driving seat the creditors and the courts are.

Advantages Disadvantages of Voluntary Liquidation

Advantage, you select the practitioner of your choice and take advice about issues that might be worrying you, like director disqualification, wrongful trading or taken to much money out of your company for yourself…..

Disadvantage, You have to pay to employ the insolvency practitioner anything from £5,000 and above depending on how much work is involved in the liquidation.

The Insolvency Practitioner is an officer of the courts and he has to look after the interests of all the creditors by law.

Continuing With The Business But Reducing or Eliminating The Debts

Continuing With The Business Reducing The Debts

This can be done by a CVA know as a Company Voluntary Arrangement. This also has it’s advantages and disadvantages, but you need to take a look at one of my other video under CVA, which will explain the ins and out of a CVA.

Continuing With The Business Eliminating The Debts

This can be done in a number of ways, depending on how viable the business is if it did not have the debts and has the business got a future.

With those facts in mind the options which might be open to the company are:

  • An Administration Order
  • Pre-Pack Administration
  • traight forward Liquidation then buying the assets back from the liquidator at a knock down price.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

Business bankruptcy“As a Turnaround Practitioner Insolvency Auditor, It s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

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