Small Business Bankruptcy Attorneys In Denver, Colorado Are Ready To Guide You
Looking for a small business bankruptcy attorney in Denver, Colorado? If you’re a small business owner in Colorado whose business is struggling and you’re considering bankruptcy, we can help. We are experienced small business bankruptcy attorneys who can help you navigate the process and understand your options.
Chapter 7 Small Business Bankruptcy
Chapter 7 small business bankruptcy is usually used in two situations. The first is when the business has shut down and the owners want to wind the business down and liquidate any remaining assets. Once the small business files Chapter 7 bankruptcy, the trustee will sell any remaining assets to satisfy any outstanding business debts.
The second situation where Chapter 7 small business bankruptcy is used is when the owners have signed personal guarantees for business obligations, like commercial leases and lines of credit. Once the business shuts down, the lenders and the landlord will look to them to satisfy those debts. Chapter 7 small business bankruptcy can eliminate business leases, commercial loans, and business credit cards and stop those creditors from pursuing the business owners.
Keep in mind that oftentimes small business owners will need to file a personal Chapter 7 bankruptcy to fend off business creditors who got personal guarantees for their loans of commercial leases. A personal Chapter 7 bankruptcy requires examination of the business owner’s financial situation to see if it is appropriate or safe for them to ensure protection of their assets. We might need to discuss Chapter 13 bankruptcy instead of Chapter 7 for certain business owners.
Chapter 11 Small Business Bankruptcy
Chapter 11 bankruptcy is another option. It allows a business owner to reorganize her business and repay her debts over time and keep her business open. Whereas Chapter 7 small business bankruptcy filers have usually stopped operating or plan to stop operating soon, Chapter 11 small business bankruptcy filers want to continue operating their business.
Chapter 7 and Chapter 11 small business bankruptcy are two completely different animals. Chapter 11 bankruptcy for small business is rare. Oftentimes, the solution the business owner is looking for can either be found in Chapter 7 or Chapter 13 bankruptcy or outside of the bankruptcy court entirely.
Chapter 11 bankruptcy is also very complex and expensive. The filing fees alone are almost $2,000 for a Chapter 11.
Subchapter V Small Business Bankruptcy
There is one other option for small business bankruptcy: Subchapter V. Subchapter V refers to the fact that it is a subsection of Chapter 11 bankruptcy. It is more streamlined than Chapter 11 bankruptcy and hence less complex and less expensive.
One key distinction between Subchapter V, regular Chapter 11, and Chapter 7 is that the business owner can decide to sell or liquidate the business. Chapter 11 requires the business owner to maintain the business and Chapter 7 puts the bankruptcy trustee in the driver seat to control liquidation. Subchapter V opens up a broad horizon of options for the business owner.
Talk To An Experienced Small Business Bankruptcy Attorney In Denver, Colorado
Bankruptcy is not always the best option for small businesses, and your attorney will help you explore all of your options before deciding whether to file for bankruptcy. If you decide to file for bankruptcy, your attorney will help you through every step of the process.
If you’re thinking about a small business bankruptcy, we’d be happy to talk with you. We offer free consultations for small business owner who want to know if bankruptcy might be their best option. The best way to schedule an appointment with an experienced Denver, Colorado small business bankruptcy attorney at a time that is convenient for you is by going here.
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