Miami Family & Small Business Bankruptcy Lawyer
Florida Family & Small Business Bankruptcy Attorney Helping Clients in Miami
Owning a small business can be rewarding and exciting, but it can also be stressful when the business is not making enough money. Many small business owners in Miami choose business structures that make them personally liable for debts of the business. As such, if the business begins taking on more debt than it can repay, the owners and their families can begin worrying about how debt will affect their financial futures.
At Nowack & Olson, PLLC, our Miami small business bankruptcy lawyers have years of experience serving small business owners and their families with a wide variety of bankruptcy issues, and we can speak with you today about your situation.
Owner Liability for Miami Small Business Debts
Generally speaking, there are two different types of business structures that family businesses and small business owners tend to select: a sole proprietorship or a partnership. With both of these types of business structures, the business owners are responsible for the liabilities of the business. To be clear, when a business is structured as a corporation, for example, the business owners do not have to worry about personal liability if the company goes bankrupt. In such situations, the corporation itself can file for bankruptcy, and the personal finances of the business owners are not in jeopardy. Differently, with a sole proprietorship or a partnership—which are much simpler business structures than a corporation—the business owners can be personally liable for the debts of the business. With a sole proprietorship, the income of the business and its debts are, for all intents and purposes, the income and debts of the owner individually.
Given the financial link between sole proprietorships or partnerships and the business owners, when a small business is struggling with debt, this often means that the business owners may need to consider bankruptcy.
Bankruptcy Options in Miami for Small Businesses
What types of bankruptcy options are available for family-owned small businesses in Miami? In general, a business can choose between Chapter 7 or Chapter 11 bankruptcy. Here is some basic information about these two types of bankruptcy:
- Chapter 7 bankruptcy: This is a liquidation bankruptcy, which means all business assets will be liquidated in order to repay creditors, and the business will need to close down.
- Chapter 11 bankruptcy: This is a reorganization bankruptcy, which means that the business will reorganize its debts through a repayment plan to pay off creditors over a specific amount of time, and the business can actually remain open during this period.
If you plan to close the business, Chapter 7 bankruptcy may be the best option for you. Yet if you want to take steps to pay down debt while keeping the business open, Chapter 11 bankruptcy may provide the debt relief you need.
Learn More From a Miami Family & Small Business Bankruptcy Lawyer
Filing for bankruptcy is extremely complicated, especially when you are a small business owner and other family members are involved. To learn more about your options, you should discuss your case with an experienced Miami family & small business bankruptcy lawyer as soon as possible. Contact Nowack & Olson, PLLC today.