Small-Business Bankruptcy Attorneys Dedicated To Entrepreneurs
Being in financial turmoil, especially for small business owners is definitely a headache. If you think there’s no more hope to recover and bankruptcy is your only chance, then it is best to call a small business bankruptcy attorney in Rockville, MD.
Debt problems related to a business should not adversely affect the personal assets of the owner or their immediate family. Kurland Law Group helps Maryland residents get control of out-of-control debts. The firm’s Rockville bankruptcy lawyers are proactive and combine effective asset protection strategies with a big-picture approach.
At Kurland Law Group, we are dedicated to helping individuals and businesses gain the proper knowledge for preparing and filing for bankruptcy. Our legal guidance ensures that you are on the right path. Call us today for a free phone consultation with our experienced lawyers.
What is Small Business Bankruptcy?
Small business bankruptcy is a legal process that allows struggling businesses to eliminate or restructure their debts in order to regain financial stability.
This type of bankruptcy typically falls under Chapter 7 or Chapter 11 of the U.S. Bankruptcy Code. As you see, Chapter 7 bankruptcy is about liquidating assets to pay off creditors. In contrast, Chapter 11 bankruptcy involves reorganizing a business’s debts and operations to continue operating and paying off debts over time.
Helping You Shield Valuable Personal Property
When a business entity such as a limited liability company (LLC), partnership or corporation is properly established, the owner does not have to fear personal property being taken should the company run into financial problems. Not delineating valuable assets for personal use and business operations is a recipe for disaster and a quick path to losing valuable possessions.
Collection agencies employ aggressive collection tactics when a small business is facing tough financial times. Kurland Law Group‘s attorneys respond with equally aggressive strategies to protect personal assets and the rights of struggling business owners. Far too much is at stake for overlooked details or errors in setting up a business to result in the loss of a home, valuable investment property or marital property and assets.
What are the Types of Small Business Bankruptcy?
Bankruptcy is a process a business goes through in federal court. It is designed to help your business eliminate or repay its debt under the guidance and protection of the bankruptcy court. Business bankruptcies are usually described as either liquidations or reorganizations, depending on the type of bankruptcy you take. The following are the common types of small business bankruptcy:
Chapter 7 Bankruptcy
Chapter 7 bankruptcy or also popular as “liquidation bankruptcy”. It basically involves selling the assets of the business to pay the creditors. This also applies for businesses that can no longer have the capacity to operate due to loss and failure to pay debts.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is also called reorganization bankruptcy. It gives small businesses the opportunity to restructure their operations and debts to continue operating and pay dues over time.
With the help of Kurland Law Group’s small business attorney, we can provide you with the proper guidance on which type of bankruptcy your business falls in. Contact us now to learn more!
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What Are the Eligibility for Small Business Bankruptcy?
Most small business owners want to know if bankruptcy will help them keep their firm running, and in many cases, the answer is yes. Filing for bankruptcy can assist a struggling small business to survive and flourish. However, before filing for bankruptcy, they should be aware if they are eligible or not. Below are the guidelines to follow:
Chapter 7 Bankruptcy Eligibility
To qualify for Chapter 7 bankruptcy, the business owner must meet certain eligibility requirements.
Included in these factors are the following:
- Means Test – The business should pass the “means test,” which compares the business’s income to the median income for a similar-sized household in the same state. If the business’s income is below the median, it may be eligible for Chapter 7 bankruptcy.
- Business Size – The business must be a small business, as defined by the Small Business Administration (SBA). Generally, this means that the business has fewer than 500 employees.
- Debt-to-Income Ratio – The business’s debt-to-income ratio must be high enough to demonstrate that it is unable to pay off its debts.
- Asset Value – The business’s assets must not exceed a certain value, which varies depending on the state where the business is located. If the business’s assets are worth more than this value, it may not be eligible for Chapter 7 bankruptcy.
Chapter 11 Bankruptcy Eligibility
The qualifying factors for Chapter 11 bankruptcy for small business owners are less straightforward than Chapter 7 bankruptcy. This is because there are no strict eligibility requirements. However, certain factors could indicate that a small business is a good candidate for Chapter 11 bankruptcy.
These factors include:
- Financial Distress – The business is already in a state of struggling financially and is unable to pay off its debts.
- Viable Business Model – Apart from its financial difficulties, the business must have a viable business model, which can support that the business can still recover.
- Ability to Reorganize – The business must also create a feasible reorganization plan which will permit you to continue operating and paying off debts over time.
- Willingness of Creditors – The business’s creditors are willing to work with the business and agree to the proposed reorganization plan.
- Size of Business – The business is a small business, as defined by the Small Business Administration.
Why Do I Need a Small Business Bankruptcy Lawyer?
Dealing with all the necessary paperwork and documents as well as the legalities of small entrepreneur bankruptcy is not easy. With the aid of a knowledgeable lawyer that specializes in small business bankruptcy is a great help.
At Kurland Law Group, we make sure to provide you with adequate advice and guidance on your bankruptcy journey. In addition, we can provide you with the following:
- Experience – Our bankruptcy lawyers have more than 20 years of combined proficiency in dealing with bankruptcy cases. We understand the challenges when confronting significant debt problems and other legal issues.
- Advocacy – It is always part of our advocacy to help. Our law professionals will be your best partner to have the right person who will represent you to achieve the best outcome.
- Peace of Mind – With the assistance of a lawyer, you will not just have a representative but also someone who can guide you during this uncertain time.
Want to get the best advice from knowledgeable Kurland Law Group lawyers? Schedule a free case evaluation today!
Looking Out For Your Business
If you are a small business owner struggling with debt, it’s time to take action and seek the help of an experienced bankruptcy attorney in Maryland. At Kurland Law Group, we specialize in small business bankruptcy and have helped countless clients achieve financial freedom and peace of mind.
You don’t have to stress yourself! Contact Kurland Law Group via email or by calling the law firm to discuss the protection of personal property from a business failure that leads to bankruptcy.
Aside from small business bankruptcy, we offer other legal services from asset protection, consumer fraud, and loan modification. Let us show you why our legal services are the best choice for small business bankruptcy.
