What is a business bankruptcy, and can a business even file bankruptcy?
Yes, and it’s where a corporation or other entity files a case and obtains a discharge. It may or may not be necessary, and sometimes can create more problems than it solves.
Often, there is no discharge, and there are issues as to whether the creditors of the business remain able to go after the person behind the company. Did you personally guarantee the debt? Did they run your credit when they gave the business some credit?
If you have a particularly large or complex business (by large, I mean more than a few employees), there is a chance that the business can reorganize in a Chapter 11 bankruptcy. The company doesn’t need to shutter the doors. It’s just a way to keep things running and get creditors paid in a manner the business is able to accommodate.
Now the question is: should you do a business bankruptcy? Should you do a personal bankruptcy? Both? Neither?
Contact us to find out how all this works.