Filing Business Bankruptcy: Will I Lose My Personal Property?
It’s not uncommon for Florida business owners to face a lot of debt, especially when they’re first starting out. However, if you’re considering filing for a business bankruptcy, things are getting serious. You may be wondering if your personal assets are on the line, or if they will be protected from liquidation. The answer isn’t always clear, but you can get help from an experienced business bankruptcy attorney.
The Difference is in How Your Business is Structured
How you structured your business plays a significant role in whether or not creditors will seek to liquidate your personal property and assets when you file for business bankruptcy. For example, if you’ve formed a sole proprietorship or a partnership, your creditors may petition the Florida bankruptcy court to examine what personal belongings of value you may have. They will determine if those belongings can be liquidated to pay some or all of your business debts. However, if you’ve structured your business as an LLC or a corporation, you may have some protection against creditors going after your personal property and assets.
Filing a Chapter 11 Bankruptcy
No matter how your business was structured when you started your company, if you file a Chapter 11 bankruptcy, you may be able to protect both your business and personal assets from liquidation. A Chapter 11 bankruptcy affords the bankruptcy petitioner the ability to restructure or reorganize their business without closing the doors of their company. The reorganization allows the business owner and the creditors to come up with a feasible repayment plan that gets the business out of debt while continuing to remain in operation.
Additionally, as soon as a Chapter 11 bankruptcy is filed, an automatic stay goes into place. This means that your creditors can no longer pursue collection activities against you or your business until the bankruptcy has been finalized.
When to Contact a Business Bankruptcy Attorney
If your business is struggling to stay afloat and has more debt than profits, it’s time to take action to save your business and protect your personal assets from liquidation. At the Law Firm of Joel M. Aresty, we have the experience and resources to guide your business through the bankruptcy process, and we’ll do everything possible to protect your assets. Call now for a consultation to discuss your unique legal needs at 1-855 DOC LAWS.