Orlando Business Bankruptcy Attorney

If your business is struggling financially, you may have already considered the possibility of filing bankruptcy. Whether your business is a sole proprietorship, a limited liability company (LLC), partnership, or a corporation, you may be able to file bankruptcy. However, these cases are very complicated and the type of bankruptcy you file will have different outcomes for your business. Below, our Orlando business bankruptcy attorney explains more.

Different Types of Bankruptcy for Businesses

A reorganization bankruptcy, such as Chapter 11 or Chapter 13, allows you to stay in business and continue to serve your clients and customers to earn a profit while you repay your debt over a certain period of time. On the other hand, a liquidation bankruptcy, such as a Chapter 7, requires your business to shut its doors. This is required so the assets of the business can be liquidated to repay customers. It is not easy to determine which type of bankruptcy is best for your business, so it is important to speak to an attorney before you file.

Which Type of Bankruptcy is Best for Your Business?

If your business has experienced a temporary downturn and you expect that profits will increase in the future, a reorganization bankruptcy could be the right option for you. This will allow you to keep operating your business while creating a payment plan that makes it more affordable to pay your debt. Even if you do not expect business profits to pick up considerably, a reorganization bankruptcy may be the right option for you if you can find a way to reduce your expenses.

If you do not expect profits to significantly increase, and you cannot find a way to reduce your expenses, you may have to file Chapter 7 bankruptcy, which will likely result in having to close down your business.

Filing Bankruptcy as a Sole Proprietorship

If you operate a sole proprietorship, it will not affect what type of bankruptcy you file. However, there are two important things to keep in mind. The first is that you may be able to file a Chapter 13 bankruptcy, which is less expensive and less complicated than Chapter 11. The second important point is that as a sole proprietorship, you and your business are the same entity legally. This means that you must file a consumer or individual bankruptcy and so, you will have to include all of your personal debts and assets in your case.

Our Business Bankruptcy Attorney in Orlando Can Advise You of Your Options

When your business is struggling financially, it is a very stressful situation. At this difficult time, you need sound legal advice. At Florida Law Advisers, P.A., our Orlando business bankruptcy attorney can explain your legal options, help you determine which type of bankruptcy is right for you, and guide you through the appropriate process so you have the best chance of a successful outcome while also protecting your business. Call us now at 1 (800) 990-7763 or contact us online to schedule a consultation and to learn more about how we can help.