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.
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.