subject: Working With A Chapter 13 Lawyer To Protect Your Business [print this page] A Chapter 13 lawyer may be just what you need to protect your business. If you are facing significant debt and your business is at risk, these attorneys can provide you with help and guidance. Those who own a sole proprietorship or a partnership are most at risk because these types of businesses are not considered separate entities for the individual. That means that your personal debt collectors can go after your business. This is a real problem and it could cause your business to shutter its doors. There is help available, though.
What's At Risk?
In some cases, you may be able to incorporate your business to separate your personal property from that of your business. However, this is not often easy to do after you have significant debt concerns. That is when you should call a Chapter 13 lawyer. This professional will talk to you about this form of bankruptcy, which protects all of your assets unless you elect to hand them over. It can help to protect your business as well.
In this form of bankruptcy, your assets are not at risk. Rather, this method allows for the reorganization of your debt to make it easier for you to repay. You will set up a payment plan, for example, in which you pay the court a certain amount of money every month for three to five years towards your debt. The trustee handles paying your creditors. Eventually, most unsecured debt is discharged. During this process, no creditor can try and take your assets unless you stop making payments.
Is It Right for You?
Though you may be thinking about filing Chapter 7 for total discharge, if you own valuable assets, including your business, you may want to think again about this type of filing. It will require the liquidation of your assets to pay your creditors if they are unprotected under the state or federal exemptions. Your lawyer can help you to determine which form is right for you. The good news is that once you get through this process, you can rest assured that no creditor can come after your business again, as long as you maintain your debts.
A Chapter 13 lawyer will help you to protect problems with business and personal debts and assets. The goal here is to help you to get through this process as quickly as possible without any risk to your future ability to operate your business. However, it is often very clear that you need to do something. If you do not file bankruptcy, take steps to protect your assets in other ways from creditors.
