Many small business owners started up before the economic downturn with high hopes and aspirations. As they amassed venture capital and later opened up shop, things were going well.
However, with the slipping real estate market and falling stock prices, many young small businesses began to dry up. Markets got tighter, and the newer, less experienced businesses were some of the first to go.
Turning to Business Bankruptcy
No small business thinks they’ll ever file for business bankruptcy later on down the road. However, as things mover deeper and deeper into the red, filing for bankruptcy in Tampa is sometimes the only way to go. If you’re a small business owner that’s kept up all night by the thought of your struggling business, it might be time to start thinking about business bankruptcy instead of all that debt that continues to amass. Business bankruptcy can give you and your company the relief you need.
If you’re wondering what happens when filing for business Chapter 7 bankruptcy, here’s the quick run down:
- If your business is a partnership, the partnership will be dissolved.
- If you have a sole proprietorship, you can probably get the debts discharged. Also, it’s important to note the significance of separating you (as an entity) from your business (as an entity) in situations like this.
- Your company’s assets will be liquidated in order to pay off creditors as much as possible. The remaining debt will be discharged through bankruptcy.