Business bankruptcy

Call 651-633-2757

Chapter 7 might be the best option

Many people believe that a lengthy, expensive Chapter 11 bankruptcy is the only way for a troubled business to pursue debt relief. That’s not true. Chapter 7 bankruptcy is available for small businesses.

Prescott has helped struggling small business owners since 1975. We can help you determine if Chapter 7 bankruptcy is right for your Minnesota small business. And if you do file, we’ll be right by your side when you face the bankruptcy trustee. We know how the trustees interact with small business bankruptcy files, and trustees know they can trust our work to conform to the law.

We’re available to talk to you at no charge about the most important aspects of your case, including:

  • Liquidation of inventory
  • Ideal timing with regard to tax liability
  • Different considerations for corporations versus proprietorships
  • What to include in a bankruptcy petition
  • How to set up the Chapter 7 bankruptcy process
  • How to document assets and liability to the satisfaction of the bankruptcy trustee.

It’s important to remember that a Chapter 7 bankruptcy for a small business involves intricate, detailed planning and execution in the preparation stages. If matters are handled correctly, small business owners may find the debt relief they seek, and the business failure will become a thing of the past.

Business Bankruptcy
Even if your small business is a separate corporation or legal entity, banks often make the owner guarantee its debts. Prescott works with owners to ensure they’re personally protected.

Get a Free Consultation

No stress. No obligation. No kidding.
Visit in person or online.

Articles of interest

What is Bankruptcy?

What Is Chapter 7 Bankruptcy?

Filing for Chapter 7 bankruptcy gives you immediate protection from creditor harassment, collections activity, collections calls, wage garnishment, bank levies, and can even stop a pending home foreclosure or car repossession. The end result of a successful Chapter 7 bankruptcy is a discharge – which is a court order that eliminates most legally binding debts such as credit cards, hospital bills and medical bills, repo deficiency balances, and even certain tax debts.
Learn More

What is Bankruptcy?

What Will Happen To My Corporation Or LLCs In Bankruptcy?

Unfortunately, most financial institutions and the Small Business Administration (SBA) will require the owners of small corporations and LLCs to sign personal guarantees for any loans or debts given to the corporation or LLC, which circumvents much of the legal protection inherent in these types of businesses. This personal guarantee means that the guarantor becomes personally liable for the debt.
Learn More

What is Bankruptcy?

What Will Happen To My Sole Proprietorship In Bankruptcy?

Prescott Pearson & Tande, PA has helped thousands of Minnesota business owners navigate through their personal and business financial struggles to find a solution to their debt. There are really two distinct areas that bankruptcy and a person’s business intersect: business as the cause of a person’s debt; and business as an asset in a person’s bankruptcy case. How each of these two distinct aspects of business ownership are affected in bankruptcy is determined by what type of business is involved.
Learn More