Small Business Bankruptcy
If your business is struggling with debt, small business bankruptcy may provide a path forward. A bankruptcy lawyer can help you understand your options, protect your assets, and decide whether to close or restructure your business.
Eliminate Business Debt
Protect Personal Assets
Explore Restructuring Options
Free Case Evaluation
How Small Business Bankruptcy Works
Small business bankruptcy provides legal options for business owners facing overwhelming debt. The right approach depends on your business structure, assets, and long-term goals.
In many cases, business owners choose between Chapter 7 bankruptcy, Chapter 13 bankruptcy, or Chapter 11 reorganization. Each option handles debt differently and offers different levels of protection.
If your business is a sole proprietorship, business debt is often treated as personal debt. This means bankruptcy can address both business and personal obligations at the same time.
Understanding your structure is critical. The type of entity you operate determines what can be protected and how your debts are handled.
Chapter 7 for Business Closure
Chapter 7 bankruptcy is often used to close a business and eliminate unsecured debt. Assets may be liquidated to repay creditors.
Chapter 13 for Sole Proprietors
Chapter 13 bankruptcy allows sole proprietors to restructure debt into a manageable repayment plan while continuing operations.
Chapter 11 for Business Reorganization
Chapter 11 bankruptcy is designed for businesses that want to continue operating while restructuring debt and obligations.
Stop Creditor Actions
Filing bankruptcy triggers an automatic stay that stops lawsuits, collections, and enforcement actions.
The Bankruptcy Process
1
Consultation
Review your business structure, debts, and financial goals with a bankruptcy lawyer.
2
Strategy Selection
Determine whether Chapter 7, Chapter 13, or Chapter 11 is the right option.
3
Filing Your Case
File your bankruptcy petition and activate protections against creditors.
4
Resolution
Eliminate or restructure debt and move forward with a clear financial strategy.
Why Clients Choose Our Firm
- Free initial consultation
- Experience handling small business bankruptcy cases
- Clear guidance on business vs personal liability
- Strategic planning based on your business goals
- Dedicated support throughout the process
Small Business Bankruptcy FAQ
Meet Your Debt Relief Attorney
Melanie Travare
Principal Attorney & Founder
Melanie Tavare helps business owners navigate complex financial challenges, including small business bankruptcy. She provides clear guidance and practical strategies to help clients protect their assets and make informed decisions.
Legal and Financial Resources
U.S. Bankruptcy Court
https://www.uscourts.gov/services-forms/bankruptcy
Small Business Administration (SBA)
https://www.sba.gov
Consumer Financial Protection Bureau (CFPB)
https://www.consumerfinance.gov/consumer-tools/debt-collection/
National Foundation for Credit Counseling (NFCC)
https://www.nfcc.org/