If you are a business owner and you are planning to file for bankruptcy, you may be wondering does personal bankruptcy affect business owners. Business owners should discuss their potential Chapter 7 bankruptcy filing with an experienced bankruptcy attorney. There are several factors that you should be aware of before you file for bankruptcy as a business owner.
The Factors That Business Owners Must Consider
The first thing that business owners should consider is the protection of their businesses. Are the assets of the business protected from the bankruptcy?
The second factor that business owners must consider is the value of the business. You should figure out how much your business is worth before you file for bankruptcy.
There are a few bankruptcy exemptions that business owners can utilize that will protect business assets. As a result, the bankruptcy courts do not allow creditors to seize any of the protected assets. This is one of the reasons why you should assess the value of your business. Once your business in valued, it can be included as part of your protected assets.
The Ways You Can Value Your Business
When determining does personal bankruptcy affect business owners, as previously discussed, you will need to find out the value of your business. However, the method that you will use to gather this information will depend on the type of business you own. For example, an appraiser may value a business with a sole proprietor or single shareholder based on the current market value of the company’s assets.
Speak with your accountant and ask him to provide you with a current list of your company’s liabilities and assets. If someone is interested in buying your business, it would be a good idea to also get a current appraisal.
After an appraiser has valued your business, you can then find out if any exemptions apply to your situation. If you are unsure or have questions, a bankruptcy attorney can help you.
The most common concern business owners have when wondering does personal bankruptcy affect business is whether they will be able to continue operating their businesses. You will need to speak with the trustee who is handling your case. Most of the time a trustee will not prevent you from running your business. However, the trustee may require you to get liability insurance for the company.
The attorneys with Douglas Jacobson Law Firm will work with you to find out if your business qualifies for any exemptions and the requirements of the trustee. Contact us today for a free consultation.