Many people believe that if they are self-employed they are not eligible to file bankruptcy; however, that is simply not true. You can file a self-employed bankruptcy case. If you are self-employed, you can file Chapter 7 or Chapter 13 bankruptcy just as someone who works as employee for another person or company.
While being self-employed and filing bankruptcy can make a bankruptcy case a bit more challenging, an experienced bankruptcy attorney can make the process less stressful and easier for the debtor. Our office handles business bankruptcies and self-employed bankruptcies on a regular basis.
Understanding a Self-employed Bankruptcy Case
Being self-employed often requires a person to take financial risks in order to keep the business operating at times. If business slows down, this could result in substantial debt for owner. In many cases, the owner must co-sign business debt meaning that the owner is accepting personal liability for the debt. If the business is unable to pay the debt, the owner is legally liable for the debt. The owner’s personal assets could be in jeopardy if he or she is unable to pay the business debt.
In a self-employed bankruptcy case, the owner can reorganize personal and business debts or erase those debts. If the owner files a Chapter 7 self-employed bankruptcy case, he can choose to continue the business or close the business. The owner’s personal debts and any business debts that he co-signed become part of the bankrjtpcy filing. Unsecured debts will be discharged; however, the owner may choose to continue paying some of the business debts for accounts that he needs in order to continue operating his business.
In a Chapter 13 self-employed bankruptcy case, the owner continues to operate his business but reorganizes he debts into a manageable bankruptcy plan. A Chapter 13 self-employed bankruptcy case is more complex than the typical Chapter 13 case with more requirements being placed on the debtor. You want a bankruptcy attorney with experience in handling a self-employed bankruptcy case to guide you through the process.
Do Not Feel Overwhelmed by a Self-employed Bankruptcy Case
Filing bankruptcy is a very personal choice but before you make any decisions about your business and your finances, you should understand your options. If you are self-employed, contact my office to schedule a free consultation. I will explain the benefits of filing a self-employed bankruptcy case. Together we will develop a plan that is best for your unique financial situation. You do not need to lose your business or your personal assets. Bankruptcy can help save your business while protecting your personal assets.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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