What Happens to My Business if I File for Bankruptcy?

Whether you own a sole proprietorship, small business or business corporation, it is important to obtain help from an attorney who understands the effect bankruptcy can have on business operations. Filing for bankruptcy while owning business assets has its own separate issues that need to be examined. Some cases can be rather complex.

Experienced Business Bankruptcy

Trust the experience of a Twin Cities law firm that has been helping Minnesota families and businesses get a fresh start through the bankruptcy process since 1975. At Prescott Pearson & Tande, PA, " This is all we do, and we do it well." Our experienced bankruptcy lawyers can go over your financial circumstances in a free initial consultation.

How Does Filing Bankruptcy Affect Business Operations?

Many clients who have business assets come to us asking the following question: Can I continue to operate my business if I file for bankruptcy? The answer depends on the value of the business assets, the type of business structure and the amount of business debt:

  • A sole proprietorship whose income is derived from job to job contracts with modest assets and few business debts may survive.
  • A sole proprietorship whose income is derived from larger contracts and has value in business assets and few business debts may not survive.
  • A small closely held business corporation or LLC with few assets, smaller business contracts and modest business debts may survive.
  • A small closely held business corporation or LLC with larger assets, larger business contracts and modest business debts may not survive.

The larger the debt load that the business holds, the less likely the bankruptcy trustee would be interested in taking its assets, but it would also be less likely that it would make sense for an owner to continue operating the business.

Determining if a business can survive bankruptcy can become a complicated equation that you need professional help to decide. Let the seasoned bankruptcy attorneys at Prescott Pearson & Tande, PA advise you today.

"This Is All We Do, and We Do It Well."

Call for a Free Consultation Today

  • Minneapolis-St. Paul Area: 651-968-8096
  • Minnesota Toll Free: 888-366-0827

For answers to any other questions about your business and bankruptcy, call or contact our lawyers in the Twin Cities area for a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.