King & Snohomish County Washington Business Bankruptcy Lawyer
The phrase business bankruptcy typically applies to any kind of business that enters the bankruptcy process, and a Lynnwood bankruptcy lawyer can help you if your business needs bankruptcy protection in Washington. Businesses will usually have multiple options for which bankruptcy chapter they will file under, depending on the business structure.
It can be very confusing for a business owner to know which chapter applies to them or which one will be the most beneficial. Confusion about bankruptcy laws is common and is one of the primary reasons that legal representation becomes something of a must-have in these cases.
The structure of a business is the determining factor in the appropriate chapter of bankruptcy law to file under. A sole proprietorship is a legal extension of the owner, so the owner themselves will be responsible for all of the assets and liabilities of their company.
A sole proprietorship may file as an individual consumer under either chapter 7 or 13 and include both the business and personal assets and debts. This can be very complicated and you should talk to an attorney to ensure they can protect your personal assets, such as your home.
Corporations and partnerships will be legal business entities that are separate from their owners, so they can file for bankruptcy protection under either Chapter 7 or Chapter 11. Chapter 7 is a straight liquidation bankruptcy, while Chapter 11 is another reorganization plan in which the debtor proposes a plan of reorganization to keep the business alive and pay creditors back over time.
Call Us Today to Schedule a Free Consultation with a King & Snohomish County Business Bankruptcy Lawyer
Do you have a struggling business that may need bankruptcy relief? Contact Bountiful Law today to get experienced guidance about what steps can be taken to protect your company and keep the business open while you repay your debts.
Our firm knows how stressful and confusing overwhelming debt can be for business owners, and we work closely with people in these situations, so they are able to continue doing business. You can call 425.775.9700 or contact us online to schedule a free consultation that will let us take a longer look at your case and answer all of your legal questions.