Dallas Texas Bankruptcy Attorney; FAQs
Irving Chapter 7 & 13 Bankruptcy Lawyers – Keep Your Business & Eliminate Debt
Owning a small business is the quintessential American dream, offering unbridled independence and an unmatched sense of fulfillment. Unfortunately, many small business owners who poured themselves into their trade, devoted every waking moment to building a robust body of customers, watched their profits evaporate when the economy faltered.
If you have had a similar experience, and your once thriving business is now a crushing financial burden, it’s time to talk to an Irving Chapter 7 & 13 bankruptcy lawyer. Call Fears & Nachawati Law Firm at to ask about legal remedies to reduce or eliminate your business debt.
Chapter 7 and 13 Personal Bankruptcy Protection for Sole Proprietors
If you are a sole proprietor, you are personally liable for any debts you incur during operation of your business. One advantage of a sole proprietorship is that you may use personal bankruptcy, such as Chapter 7 or 13, to eradicate both business and personal debts. You may also use allowable state or federal bankruptcy exemptions to protect your private and business assets.
Once a sole proprietor has his debts discharged after personal bankruptcy, he is often able to keep his business afloat.
A Chapter 7 bankruptcy may allow sole proprietors to discharge outstanding unsecured business and personal debts, such as:
- Credit Card Debt
- Signature Loans
- Payday Loans
- Delinquent Vendor and Supplier Bills
- Accountant and Consultant Bills
- Back Rent and Old Utility Bills
- Rental Equipment/Residential/Commercial Property Leases
In a Chapter 13 plan, you may repay both your personal and business creditors back within the 3 to 5 year timeline approved by the Bankruptcy Court.
Chapter 7 Bankruptcy for Business Entities
If you own a Corporation, Partnership, or Limited Liability Company (LLC), your business has a legally separate existence from you. You may file a Chapter 7 bankruptcy on behalf of your LLC, Partnership or Corporation, but since your business is an entity, it cannot claim exemptions or receive a discharge.
A chapter 7 bankruptcy is often the best choice for business owners who don’t have future plans to continue their business, due to:
- Lack of substantial assets
- Overwhelming business debts that preclude restructuring
Under Chapter 7, your non-exempt business assets will be liquidated and distributed to eligible creditors. This is accomplished through the bankruptcy Trustee.
Although liquidating your business may be disheartening, we often find that a Chapter 7 bankruptcy provides our clients the opportunity to pay off their debts, to regroup, and to start successful new business ventures in the future.
Chapter 11 Bankruptcy for Sole Proprietors and Business Entities
Both business entities and sole proprietors may file for Chapter 11 bankruptcy. If you are a sole proprietor and your business is too large to fit into Chapter 13 guidelines, then a Chapter 11 reorganization bankruptcy is an option. Under this form of bankruptcy, a business owner who desires to keep his business afloat, can repay his creditors gradually and reorganize his business while remaining in operation.
Fears Nachawati Law Firm provides a comfortable and secure setting in which to discuss your business concerns. Call our office today at to set an appointment for a free case evaluation with a Dallas Texas bankruptcy attorney. We offer flexible payment plans to fit your budget.