Are you deep in debt? Are worried whether filing a personal bankruptcy case will affect your business? There are ways to file an insolvency case and yet keep your business active. However, a lot of it depends on the way you operate your business. Before you learn how can a personal bankruptcy case affect your business, you should check out the various forms of small businesses. Read on…
* Sole Proprietorship – This is a a form of small business, which you operate on your own; you are the sole owner of such a company. It is not incorporated and there are no partners. You may appoint employees and have a separate business account. However, from a legal standpoint, there is no difference between your personal and business accounts in case of a sole proprietorship company. Thus, you are held responsible for all liabilities of the company.
* Corporation – This type of small businesses have separate legal entity created by filing paperwork with the Secretary of the State. There are shareholders and corporate offices. A corporation can have property in its name and has a separate identity. You might not have any interest in the assets of the corporation.
* Partnership – If the business you are associated with is a joint venture with another person, it can be called a partnership. It can have a separate entity and can hold property in its name as well.
So, while filing an insolvency case in the court of law, do not leave the business out of legal paperwork. Remember, if you are the sole owner of a company, it is an asset. Your creditors can file an involuntary bankruptcy case against your business. They can file such a case if they think that you are spending business resources wastefully and lavishly, which otherwise could have been used to pay off your debts. If you squander, your business can get badly affected by personal bankruptcy. However, there is light at the end of the tunnel in the form of Chapter 13 bankruptcy. It is a good option to repay the loans in easy installments, without having to lose your company in a foreclosure.
Bankruptcy is a complicated legal process. If you want your business to remain unaffected by a personal bankruptcy case, and want to make a fresh financial start, it is advised that you hire the services of an experienced lawyer. He can help and guide you through the entire process of bankruptcy. Indianapolis houses a few reputed insolvency lawyers.
wethingtonlaw.com, hapter 7 bankruptcy indianapolis, bankruptcy indianapolis, debt relief indianapolis
