Will Chapter 13 Bankruptcy save your small business? Maybe. Chapter 13 bankruptcy sometimes allows small business owners to keep their assets while reorganizing and paying off debts through a repayment plan, usually over three to five years.
If you qualify, Chapter 13 can wipe out business debts, help you pay back creditors and reduce the balance of certain secured debts. This can reduce the burden on your business by consolidating loans into a repayment plan and lowering your monthly payments. If your Montana business has nonexempt assets, Chapter 13 bankruptcy allows you to keep them while you reorganize and pay off your debts.
However, only individuals can file Chapter 13. If your business is considered a separate legal entity (such as a corporation or a limited liability company) it cannot file Chapter 13 bankruptcy in its own name. A sole proprietor and his business is treated as the same person in Chapter 13, so all business debts are included in the bankruptcy.
Confused? Wondering if Chapter 13 bankruptcy can save your business? Hire an expert to deal with this stuff. We do it a lot. We are really good at it. The staff at Cossitt Law can help you untangle your most complex debt issues, while protecting your best interests.
Contact Cossitt Law at (406) 752-5616 and we can help you sort it out.