Are You Considering A Small Business Bankruptcy?
Michalis 'BIG Mike' Kotzakolios
Kotzakoliou, SSA

If your small business is in financial trouble, you may be considering a small business bankruptcy. It may simply be time to look into whether bankruptcy is really necessary and important aspects you should know about a small business bankruptcy. There are some questions you will need to answer about your small business.

Is Your Small Business A Corporation, Partnership Or Proprietorship?

You should be aware that corporations and partnerships are legal entities separate from their share holders or partners and can file Chapter 7 bankruptcy or Chapter 11 bankruptcy themselves. With a small business bankruptcy, you should be aware of a partnership's Chapter 7 bankruptcy. The courts trustee can go after the partners of the partnership if the partnership's assets are not sufficient to pay the partnership debts. With a small business bankruptcy, this can result in partners being sued by a well funded trustee suing for the benefit of all creditors of the partnership. Also, you should be aware that proprietorships are extensions of the small business owner and can't file bankruptcy by themselves. An individual owner of a small business bankruptcy can file Chapter 7, Chapter 11 or Chapter 13 bankruptcy as long as the debt limits are met before hand.

Are You Going To Liquidate Or Reorganize Your Small Business?

This is another important question to ask with small business bankruptcy. If you liquidate the business, you may be able to pay unpaid salaries and taxes. If you reorganize the business, this may give you some time to sell the business assets and the business itself. This can help prevent the loss of assets or cash to creditors collections. This is where you really need to retain a small business bankruptcy attorney. A small business bankruptcy attorney can give you advice that will help you avoid much pain and suffering when dealing with small business bankruptcy.

How Much Small Business Debt Is Secured?

When filing for a small business bankruptcy, you will have to know what debts are secured and unsecured. A secured debt is secured by a lien of some type of property by the creditor's. This may be by your agreement or involuntary by a court judgment or taxes. With new small business bankruptcy laws, it is best to search online for the best attorney you can find. A small business bankruptcy attorney has all the specialized knowledge to help make the bankruptcy process as simple as possible. There are many important questions and aspects to consider with a small business bankruptcy.