Business Chapter 7 Bankruptcy

Tampa Bay Business Chapter 7 Bankruptcy Attorney

Chapter 7 Bankruptcy allows those eligible, based on a means test, to discharge all of their debt, subject to the exceptions found in 11 U.S.C. 523j.  In the process, a court-appointed Trustee oversees the case and attempts to liquidate any nonexempt assets

Chapter 7 bankruptcy is not typically used by LLCs or corporations because it will essentially close the business.  Chapter 7 bankruptcy is also known as liquidation bankruptcy.  Most often, a trustee will sell the business and its assets to the creditors.  There are some limited exceptions that can be provided for “tools of the trade” or items that are considered essential for an individual to continue working.

In some cases, this type of filing may work well for a sole proprietorship that provides a specific service.  For businesses that sell a specific product and maintain an inventory, Chapter 7 bankruptcy may not be the best way forward.  An attorney can help you review and determine what option is best for you and your business.

 As with personal bankruptcy, It is important to remember that certain debts cannot be eliminated in a Chapter 7 filing, including:

• Alimony
• Child Support
• Fraudulent Debts
• Taxes
• Student Loans

We can help you determine if you qualify for a Chapter 7 Bankruptcy, what assets are exempt, what debts can be discharged and the next steps to relieve your financial difficulties.  Our attorneys have many years of experience assisting clients in Florida Bankruptcy.  Contact us today to schedule a free consultation.

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