There is a difference between Chapter 7, Chapter 13, and Chapter 11 Arizona bankruptcies. Which one is the best fit for your business and debt relief? The attorneys at My AZ Lawyers will listen to the particulars of your financial matters and recommend the best means to provide your business with debt relief.
What Chapter of Bankruptcy is the best choice for my Business?
Why an experienced lawyer in Arizona business bankruptcy is crucial here? There are three bankruptcies typically available to business owners, and each has its advantages and disadvantages. Each business bankruptcy case is different and each business owner has his/her own debt relief needs, so consult with My AZ Lawyers in order to get the individual attention and professional treatment for your particular situation.
The Chapter 7 effect
Chapter 7, in some cases, will shut down the business and liquidate assets. In other cases, a business owner can file an Chapter 7 and keep their business. In a Chapter 7 bankruptcy, both personal debts and business debts are totally erased without having to repay money. A Chapter 7 is typically over quickly, it is reasonably inexpensive to file, it is a chance to wipe the slate clean and either start a business anew, or just move forward with your life without the burden of the debt. You may start immediately to rebuild your credit after a filing, and Chapter 7 eliminates personal and business debts. Not all business qualify for a Chapter 7, however, and only certain assets can be protected.
Call 480-448-9800 to speak with an expert Arizona business bankruptcy law attorney and discuss your bankruptcy options.
Which debt relief options are best for you personally and for your business? What are your options? How should you proceed in order to best protect your rights and your assets?
THE CHAPTER 13 EFFECT
In a Chapter 13 bankruptcy case, both business and personal debts may be eliminated, but a portion of both are paid back typically through a 3-5 year repayment plan. A Chapter 13 allows business owners to file bankruptcy if they do not qualify for Chapter 7 bankruptcy protection, and you generally may keep most if not all of your assets (unlike Chapter 7). It is more expensive to file for Chapter 13, and it is more complex than a Chapter 7, so you will be asked for more requirements, provide more information. You would pay at least a portion of your debts back and only and until that period of repayment is over is the bankruptcy completed (usually this takes 3-5 years). A person who files Chapter 13 is under the strict guidance of the bankruptcy court for the duration of the repayment plan period.
Is Chapter 7 or Chapter 13 the best option for debt relief for your business debt? Call 480-448-9800 for advice from attorneys experienced in arizona BUSINESS BANKRUPTCIES – MY AZ LAWYERS, PLLC
THE CHAPTER 11 EFFECT
In most cases, Chapter 11 allows business owners to reorganize so that the business can continue operating. Also, most debts will be paid back, but at a renegotiated interest rate and balance. In opting for Chapter 11, business owners are not required to shut down business, and usually retain most business assets. This Chapter is the most complicated to file, and the most expensive. The process does take a long time to totally complete, often 20 years or more. A business owner will be liable for most of the debt, and end up paying most of the business debt back. A chapter 11 will not eliminate any personal debts.