Can I file chapter 7 bankruptcy for my small business? How? 15 Answers as of June 11, 2015

I own a small business in which I am a sole proprietor. It has come to the point where bankruptcy may unfortunately be our best option and we may have to close down. Our business debts have ballooned and we have an expensive lease. Is this actually a situation that we can use Chapter 7 for?

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If you plan to continue operating the business, then you would need to do a Chapter 13 (or 11) case. If you're going out of business then you can use Chapter 7.
Answer Applies to: California
Replied: 6/11/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
If your business is a sole proprietorship then you would have to file a personal bankruptcy and include both personal and business debts. Yes, it is possible but it is not simple. Please spend some time consulting with an experienced bankruptcy lawyer to determine whether it is the right solution for you.
Answer Applies to: Colorado
Replied: 6/8/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Yes. If you are a sole proprietor, you will personally be filing the BK. Meet with an experienced attorney to get all of your questions answered. Most attorneys charge a nominal fee for these consultations.
Answer Applies to: Colorado
Replied: 6/8/2015
Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
You will undoubtedly need to file for personal bankruptcy; companies don't get discharges.
Answer Applies to: Texas
Replied: 6/5/2015
Stephens Gourley & Bywater | David A. Stephens
Yes you can, although you may want to use an attorney. Please note that filing a business as a sole proprietor means you are personally filing bankruptcy too.
Answer Applies to: Nevada
Replied: 6/5/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    Yes. You can file a personal bankruptcy, and the business you own as a sole proprietor must be part of it. Locate an experienced bankruptcy lawyer: it's usually worth the investment. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 6/5/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Many sole proprietorships face this same situation, and bankruptcy can be a great option,. In a complicated situation like this, planning will be crucial, so make sure you retain an experienced bankruptcy attorney with specialized business experience.
    Answer Applies to: Nevada
    Replied: 6/5/2015
    Cohen & Kendziorra, P.A.
    Cohen & Kendziorra, P.A. | Robert S. Cohen
    You can file a Chapter 7 bankruptcy for a business. The business will not receive a discharge of its debts but it will allow the orderly close down of your business. The trustee appointed by the bankruptcy court will wind down your business and if there are any business assets, liquidate the assets to pay the business creditors. If you are personally liable on any of the business debts, then you may have to file a personal Chapter 7 bankruptcy to protect yourself from creditors. A breach of your business lease will also be included in the bankruptcy.
    Answer Applies to: Florida
    Replied: 6/5/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Probably yes. I don't have the full story on your assets etc. But many small business file ch7. You may find a lawyer at NACBA.org. Because it is a sole P, this will also be a personal bankruptcy.
    Answer Applies to: California
    Replied: 6/5/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You may want to just do a personal bankruptcy if you are closing your business this way you are not personally liable for any personal guarantees you may have signed.
    Answer Applies to: New York
    Replied: 6/5/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Yes, Chapter 7 is a good fit for a sole proprietorship. You'll discharge the debts and be released from the lease.
    Answer Applies to: Ohio
    Replied: 6/5/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Yes, you sound like a good candidate for bankruptcy. You could get the debts and the lease discharged, but you need help evaluating your personal assets to make certain that you don't lose more than you were expecting. Many bankruptcy attorneys provide a free consultation to make sure bankruptcy is right for you.
    Answer Applies to: Oregon
    Replied: 6/5/2015
    Danville Law Group | Scott Jordan
    Yes it is.
    Answer Applies to: California
    Replied: 6/5/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Potentially, but it is impossible to counsel you without all of the facts. If you are in Michigan you are welcome to call Musilli Brennan Associates PLLC with details and to potentially engage the firm.
    Answer Applies to: Michigan
    Replied: 6/5/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Yes but when dealing with a business you should consult an attorney in your area
    Answer Applies to: Florida
    Replied: 6/5/2015
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