You had what you thought was a great idea and put your heart and soul into getting the business off the ground but despite all the hard work and toil you have found yourself on the ropes financially with a load of business related debts. What is your next step and where do you turn?
The very first step would be to contact a business bankruptcy attorney or trustee to discuss your options and weigh the pros and cons of seeking bankruptcy protection. If you do decide to seek protection through the courts, where do you stand with the debts that have accumulated while trying to keep the business running?
If you choose to proceed with a Chapter 7 bankruptcy the least you need to know is that if you are a sole proprietor you and your business are considered essentially one and the same and for the most part you will be able to erase those debts and move on with your life. If, however, you are a part of a corporation or an LLC then the situation will be a little more complex.
In a Chapter 7 bankruptcy, provided the majority of the debts are business related, you can be pretty sure they will be wiped clean unless the debts prove to be of a personal nature and are not truly business related. In that case, you would be forced to meet certain criteria set out by the courts found in the means test.
Again the most advisable move is to contact a bankrupt attorney Houston or trustee and get the questions you have answered by a professional before making a decision. You will be much better off knowing exactly where you stand and how to proceed.