A bankruptcy attorney can relieve your stress and provide you with a fresh start when you can no longer pay your creditors by liquidating your assets to pay your debts, or by creating a repayment plan.
Bankruptcy is structured to help individuals and businesses who owe more debt than they are able to pay. Under the US Bankruptcy Code, procedures are in place to protect troubled individuals and businesses by providing for orderly distribution to their creditors through reorganization or liquidation. The three main chapters of the Bankruptcy Code are Chapter 7, Chapter 11, and Chapter 13.
At Chapin Law Firm, LLC, we meet a lot of business owners who are convinced they need to file bankruptcy, and while that may be the case, it is not always necessary. In fact, if your goal is simply to shut down your business, oftentimes, especially if your business doesn’t have a lot of tangible assets, you can just let the business die a natural death. You would need to hire a bankruptcy attorney who can file articles of dissolution with the Secretary of State. In this scenario, no business bankruptcy needs to be filed. Your CPA can handle whatever tax steps need to happen and you can then simply close down your business and walk away.
However, once the dust settles, and creditors realize there is no more money coming in from your business to pay your debts, they may come after you personally. At this time, you should strongly consider hiring a bankruptcy attorney to file for protection for yourself with either a Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy, referred to as liquidation bankruptcy, allows any non-exempt assets you may have to be liquidated and the funds used to pay back your creditors. In many cases, all assets are either exempt or too nominal to justify being liquidated. Your bankruptcy attorney can explain all the intricacies and options of filing for Chapter 7 to you so that you can make an informed choice in which route to take in your personal situation.
With Chapter 13 bankruptcy, referred to as reorganization bankruptcy, your bankruptcy attorney assists with putting together a payment plan to pay back your creditors over a three to five year period. With this type of action, you are allowed to keep all of your assets regardless of whether or not those assets are exempt or non-exempt. The court must approve your proposed payment plan and you will be required to make all your payments on time. Upon conclusion, your eligible debts will be discharged. Your bankruptcy attorney can explain the key differences between Chapter 7 and Chapter 13 bankruptcy, and help you find the best option.
There are numerous benefits to filing bankruptcy. You can rebuild your credit, resolve or discharge tax liabilities, restructure your business, stop collection activities, and more. Call Chapin Law Firm LLC when you are considering filing bankruptcy – for your business or for yourself. Our experienced bankruptcy attorney can help you determine if bankruptcy is right for you. We welcome your call, or you may contact us at any time by completing our online form. We offer bankruptcy attorney services throughout Johnson County, Wyandotte County, and the Kansas City metro area.
11212 Johnson Dr
Shawnee, KS 66203