Running a business is an ongoing challenge. The financial climate changes quickly which often means your profits go down. If your bills exceed your income, it becomes a stressful situation. You wonder how you will pay off your creditors and cover the costs of running the business. Consider the benefits of filing for Business Bankruptcy in Naperville.
Get Back to Work
Fielding phone calls and communications from creditors can turn into a full-time job. Filing for Business Bankruptcy in Naperville helps to halt these ongoing communications. Everything stops during the bankruptcy proceedings. This means you can spend this valuable time trying to earn money rather than running interference with creditors. Often small businesses use bankruptcy as a way to get past hard financial times and not lose the enterprise they took years to build. However, in some cases all the assets are sold to pay off creditors and the business must shut its doors. An attorney can help you make this difficult decision.
Types of Bankruptcy
The common types of bankruptcy are Chapter 7 and Chapter 13. Some businesses can file for Chapter 11 bankruptcy. Many types of businesses cannot file for Chapter 13 bankruptcy as this is mostly for individuals rather than business entities. An experienced attorney can help you determine which option is best for your company. Filing for bankruptcy can help wipe out certain debts and give your business an opportunity to thrive again. It is also a way for you to finally close down a business that has been costing more than it makes. In some instances, it is better to admit the business should be closed down so you can start to seek alternative employment.
Personal Liability
Sometimes small business owners accrue personal liabilities as well as business ones. They might apply for credit in their own names rather than using the business name. This means they become personally liable for certain debts that cannot be included in the business bankruptcy. Consult with the Chicago Debt Solutions to find out if you should also file for personal bankruptcy to help eliminate all the debts incurred through your business. You can visit them on Facebook or Google+
