Special Considerations of Filing Bankruptcy as a Sole Proprietor

If you have a sole proprietorship, you are the business. Filing bankruptcy for the business will affect both your and your business's finances. It is extremely important that a knowledgeable bankruptcy attorney helps you through this process because business creditors may be able to take your personal assets.

Prescott Pearson & Tande, PA, has been providing bankruptcy representation to businesses and individuals in Minnesota since 1975. Our attorneys have the experience to protect your rights throughout a small business bankruptcy. Please call 651-968-8096 or 888-366-0827 to schedule a free consultation.

You Have Options for Life Post-Bankruptcy

Under Chapter 7 bankruptcy, your eligible business debts will be discharged. Nonexempt property or collateral may be sold to pay your creditors. If you have secured debts such as an equipment loan, the collateral may be liquidated if its equity is over the amount of the exemption allowed for that property. If it has no equity or is under the exemption amount, the trustee will not liquidate the property. A trustee is appointed in Chapter 7 bankruptcy to handle the liquidation of assets. After liquidation, sole proprietors are discharged from personal obligations to the business's debt.

It can be difficult for a sole proprietorship to go through bankruptcy and survive, but we have experience helping people with this issue. We understand the challenges of alienating suppliers, translating the business's value into cash, and knowing when it is best to liquidate and go out of business. In some cases, the sole proprietor may be able to start over after bankruptcy under a different business name.

Do not attempt to file bankruptcy as a sole proprietor without representation from an experienced attorney. We will review your finances and discuss your goals for your business and your future.

"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

Please call us at the numbers above or contact us online to schedule a consultation.

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