Small Business Bankruptcy
Small businesses are the lifeblood of the American economy but that doesn’t ensure success for all; in fact, small businesses carry with them a huge risk of failure. The bankruptcy code recognizes this, and provides small business owners who are facing financial difficulties the opportunity to take a time out to either reorganize or start over.
There are various bankruptcy options available to small businesses. Which option a business owner chooses depends on several factors:
- How is the business structured? Is it a sole proprietorship or is there a more formal structure in place?
- Is the owner personally liable for any of the business debt?
- What is the business owner’s goal for the future? Is the owner looking for a fresh start, or would they like to restructure and continue operating?