Small Business Bankruptcy Attorneys in Ridley Park, Pennsylvania
In the Commonwealth of Pennsylvania, small business owners who are struggling financially or overburdened with debts may be entitled to seek financial relief by seeking bankruptcy. However, understanding your available bankruptcy options, the benefits, and the downsides of each chapter, is crucial when deciding which option is best for you.
If you're a small business owner going through financial distress and considering filing bankruptcy, speaking with a knowledgeable Pennsylvania bankruptcy attorney is beneficial. At Adams Kearney Law, we enjoy directing our clients in the legal matters of small business bankruptcy.
Our dependable team can assess your financial situation, explore your available bankruptcy options, and determine the right chapter for your business. Our seasoned attorneys will help file your bankruptcy petition, walk you through every phase of the legal process, and help achieve your deserved debt relief.
Adams Kearney Law proudly serves clients across Ridley Park, Pennsylvania, throughout Chester County, Delaware County, as well as surrounding cities and the greater Philadelphia area.
What to Consider When Filing for Bankruptcy
Unfortunately, it can be very difficult and upsetting to see your business struggle financially. Nonetheless, when your small business is overwhelmed with debt, filing for bankruptcy may be a promising solution to achieve debt relief or afford you sufficient time to reorganize your business. However, there are some important factors to consider when filing for small business bankruptcy to help you make informed decisions. These include:
Generally, your business entity or structure will determine the kind of bankruptcy chapter that you may choose. Common business structures in Pennsylvania include sole proprietorship, partnership, and LLC.
In a sole proprietorship, you may need to close your business temporarily for the trustee to evaluate your assets and determine the right bankruptcy chapter to settle your debts.
In partnership, the court may ask you to sell your share of the partnership, or the trustee may withhold your profits to repay your creditors and other outstanding debts.
In LLC, the trustee may take control of all the shares of the corporation and determine whether to sell the assets, distribute net proceeds to creditors, or give you sufficient time to restructure your debts.
Plan for the Business Moving Forward
However, your future plans for the business can impact the bankruptcy chapter you choose. Here are some vital questions to ask to help you make intelligent decisions.
Do you want to liquidate business assets and close the company?
Do you want to continue running the business while restructuring?
Is it a good idea to continue or cease business operations?
Depending on your answers to these questions, you can decide whether to proceed with the small business bankruptcy.
What Are Your Bankruptcy Options?
The most common bankruptcy options available to small business owners and entrepreneurs in the Commonwealth of Pennsylvania include Chapter 7, Chapter 13, and Chapter 11 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy can help individuals and business owners going through financial hardship wipe out most of their general unsecured debts. In Chapter 7, the court will appoint a trustee to oversee your bankruptcy case. Also, the trustee will collect and sell your non-exempt assets. The net proceeds from the sale will be used to repay part or all of your debts.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is available to small business owners and other individuals who earn a decent wage but have a massive debt burden. In Chapter 13, the debtor (small business owner) will propose a feasible repayment plan structured over three to five years to the creditor to repay their outstanding debts with their potential earnings. Provided that you can keep up with your debt repayment, you will be allowed to keep all your personal and business assets in Chapter 13. It is important to note that Chapter 13 is only available to those businesses that are structured as a sole proprietorship or where an individual has personally guaranteed the debts of the business.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is available to businesses that need time to restructure their operations, assets, affairs, and debts while keeping the business afloat. In Chapter 11, the debtor (or business) will propose a reorganization plan to the creditor. The plan will help them satisfy their debts using their future revenue while they continue running the business. Generally, filing for Chapter 11 is costly and time-consuming. Also, it is only available to LLCs, corporations, and partnerships.
Work With a Reliable Bankruptcy Law Attorney
Filing for small business bankruptcy in Pennsylvania often involves a lot of hurdles and will need thorough consideration. You need to consider your business structure and your subsequent plans for the business. An experienced bankruptcy attorney will gladly help you with this.
At Adams Kearney Law, our team is ready to advise and direct clients through the complicated procedures involved in filing small business bankruptcy. Using our broad knowledge, we can evaluate the bankruptcy requirements, determine your eligibility, and help you choose the right chapter for your small business.
Also, our attorneys can help file your petition and court forms, represent you at the court proceedings, and meet with your creditors to negotiate a feasible reorganization plan. Above all, we will work diligently to protect your rights, business interests, and help you achieve a favorable repayment resolution that works best for you.
Small Business Bankruptcy Attorneys Serving
Ridley Park, Pennsylvania
If you're a small business owner thinking about filing bankruptcy, call us at Adams Kearney Law today to schedule a simple consultation. Our experienced legal team has the reliable advocacy and detailed guidance you need to navigate crucial decisions in your small business bankruptcy case. We proudly serve clients in Ridley Park, Delaware County, Chester County, and Philadelphia, Pennsylvania.