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Bankruptcy for Small Businesses
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by: Campbell.Grenier
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Word Count: 540
The entrepreneurial spirit is one of the touchstones of American
culture that has made our country so strong. The willingness of driven
individuals to step out and risk their financial stability for the sake of a
business they believe in has been a catalyst of our country’s growth. However,
a recent study by the
of
in seven bankruptcies are filed by individuals tying to cope with the failure
of a small business. While corporations or partnerships cannot file for
bankruptcy, Chapter 7 and Chapter 13 are often used by entrepreneurs who are
trying to deal with personal and business debt.
Since small businesses are unincorporated, they don’t have the
same restrictions as larger corporations,which means that any business and
personal debts are the responsibility of the business owner. So when a small
business owner gets in over their head, the business doesn’t file for
bankruptcy but the individual. For small business owners who file for Chapter 7
bankruptcy there are several protections which make it an attractive choice. If
you are a sole proprietor, you operate your business by yourself so your
business debts are also your personal debts, so they can be dismissed in a
bankruptcy case.
There are several benefit for small business owners to file for
bankruptcy. First of all, there is uniform protection in the United States on
future assets, which offers a fresh start to the debtor. So, if you are a
business owner who files for bankruptcy, you can start a new business or a new
job without worrying about having their future earnings seized to pay their
pre-bankruptcy debt.
Another important benefit for small business owners filing for
Chapter 7 bankruptcy are exemptions. Exemptions vary from state to state and
are set values above which debtors must surrender property. States with higher
exemptions are more attractive to debtors because it protects more of their
property. It is important to note that for small businesses filing for
bankruptcy is that you must also list all of your assets both business and
personal, which makes the exemption value of your state an important detail to
know before filing. It can make the difference between keeping your home or
having it liquidated.
If you are a small business owner who is seriously
considering bankruptcy and you live in Utah, you need to consult with an
attorney who understands Utah bankruptcy laws. Not all bankruptcy attorneys are
the same. While the process appears complicated, especially for small business
owners, the experienced Utah bankruptcy lawyers at Lincoln Law will be able to
help you understand your options and avoid making bad decisions that you could
later regret. Lincoln Law specializes in bankruptcies. Every day, they help
people get out from under debts from $10,000 to $1,000,000 and higher. So far,
they’ve wiped out over 100 million dollars in debt. They even created the
software that is now used by other leading bankruptcy law firms throughout the
country! You need Lincoln Law. No other law firm is better qualified to bring
you the fastest debt relief and do it right the first time.
About the Author
Brian Reed. <a href="http://www.lincolnlaw.com/">utah bankruptcy</a> - For expert legal advice on Utah bankruptcy law and how to go through the process stress-free and error-free, contact Lincoln Law at 800-722-6578.
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