Sole Proprietors and Business Bankruptcy

When major corporations struggle to make ends meet and repay creditors, they may have significant assistance from the government, investors, and other entities that may be interested in keeping the business afloat. Unfortunately, the same safety nets may not exist for small businesses, especially those owned and operated by a sole proprietor.

Persons who own and run a business may find it difficult to repay creditors and keep the company going during market downturns or other unforeseen circumstances. If a business is facing serious financial struggles, the owner may want to consider filing for bankruptcy to restructure the organization and repay creditors. If you are a business owner and are considering filing for bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.

Considerations for Sole Proprietor Bankruptcy

If a sole proprietor wishes to file for bankruptcy, he or she may find that:

• A sole proprietor may be able to discharge debts (an action that cannot be performed by a larger company)
• If the proprietor is the sole debtor, he or she will have to include all debts, including those not incurred through the operation of the business
• The bankruptcy estate will take possession of any business equipment, inventory, and receivables unless they are exempt from the filing
• The sole proprietor may be able to file for Chapter 13 bankruptcy and classify his or her business debts separately

Business bankruptcy may be the best option for small business owners who find themselves seriously delinquent on important payments to creditors, vendors, and others.

Contact Us

The Boston bankruptcy lawyers of Joshua Spirn & Associates are here to help you with your small business bankruptcy case. Contact us today at 1-800-975-5346 to discuss your legal options.