Boca Raton Family & Small Business Bankruptcy Lawyer
America was built on small business. Unfortunately, family-owned firms often face seemingly insurmountable challenges, especially business-related debt. This is compounded by the fact that many small business owners use their personal property to support their business, which means that closing their doors could effectively mean losing their homes and life savings.
The Boca Raton small business bankruptcy lawyers at Nowack & Olson can help. We advise individuals, families, and small business owners of all types in seeking bankruptcy protection and restructuring their debts. Our attorneys have more than 40 years experience in bankruptcy, and we can review your business situation and assist you in developing an effective plan to regain control of your debts–and your life.
What Bankruptcy Options Does My Small Business Have?
If you are looking to close your business while keeping as much of your personal property as possible, a Chapter 7 bankruptcy may be the right choice for you. In Chapter 7, a debtor gets to keep a certain group of “exempt” assets, and after a court-appointed trustee liquidates whatever is left, most outstanding debts will be discharged. You will be out of business, but at least you can walk away with some property to rebuild.
If you are looking to keep the business going, however, your best bet may be filing for bankruptcy under either Chapter 11 or Chapter 13. If you run your business as a sole proprietor and your debts do not exceed certain legal limits, Chapter 13 allows you to submit a debt repayment plan to the court. This allows you to keep your exempt assets while paying back your creditors over a period of 3 to 5 years.
If your business is a separate legal entity, such as a corporation or limited liability company, Chapter 11 may be your best bet for debt restructuring. Similar to Chapter 13, in Chapter 11 you submit a reorganization plan to the bankruptcy court. Typically such plans include not just restructuring debt, but also selling off assets and reducing business operations so your business can become profitable more quickly.
Chapter 11 filings are often quite complicated, especially when compared to Chapter 7 or Chapter 13. But federal law does provide a special option for “small business” Chapter 11 cases, which streamlines some of the legal procedures. But you should never file for Chapter 11–or any other form of bankruptcy–without seeking competent legal advice first. The only thing worse than not seeking bankruptcy protection is seeking it incorrectly and setting yourself and your business even further back.
Contact Nowack & Olson Today
At Nowack & Olson, we understand and appreciate small business, because we’re one ourselves. Although bankruptcy may seem like a daunting prospect, we are ready and able to guide you through each step of the process. Call us or contact us online to schedule a confidential consultation with one of our qualified Boca Raton family and small business bankruptcy lawyers today.