Business Bankruptcy in Woodstock and Alpharetta
Helping small business owners file for bankruptcy
The law firm of Herman & Russo, P.C. offers bankruptcy services in their Alpharetta and Woodstock offices to small businesses owned by sole proprietors. In a sole proprietorship, the owner is legally responsible for all financial aspects the business, including its assets, liabilities, and debts. An owner should seek bankruptcy help if the debts of the business become unmanageable. In some cases, the sole proprietor will decide to dissolve the business completely. In other cases, he or she will work to continue the business after filing for bankruptcy.
The experienced bankruptcy attorneys of Herman & Russo, P.C. provide bankruptcy advice to sole proprietors with overwhelming business debt. With the help of our attorneys, these business owners seek bankruptcy protection under Chapter 7 or Chapter 13.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is most often used when the business has no future or is being dissolved. Usually, this is because the business owes such staggering debts that restructuring the debt would be unfeasible. Additionally, Chapter 7 bankruptcy is also appropriate when the business has no substantial assets.
If you file under Chapter 7, the bankruptcy court will appoint a trustee to take possession of its assets and liquidate them by distributing them among the creditors. Upon distribution of the assets of your business, you receive a discharge—a ruling that you are absolved of your obligation for the debts. At this time, your bankruptcy is complete and you can begin to rebuild credit.
Chapter 13 bankruptcy
Sole proprietors of small businesses file Chapter 13 bankruptcy when they wish to continue the businesses, restructure the debt, and repay it based on a court-approved plan. Also known as reorganization bankruptcy, Chapter 13 allows owners to free up cash from servicing the old debt in order to maintain current operations, permits rejection of leases or contracts that are no longer useful (such as an expensive facility lease), and prevents the loss of assets needed to keep the business afloat. Our bankruptcy law firm in Alpharetta can help you file under Chapter 13.
Certain rules apply to filing Chapter 13 for a business. The sole proprietor must file the claim under his or her own name rather than the name of the business because only individuals are permitted to file for Chapter 13 bankruptcy. All fictitious or DBA (doing business as) names of businesses are included in the bankruptcy papers, along with detailed information regarding the earnings, debts, and assets of the sole proprietor. After considering all information and proposed repayment plans, the court will determine what portion of the debt must be repaid.
Take control. Get relief. Contact us.
Bankruptcy may not be for everyone, but it is one way to gain a fresh start in life. We work hard to bring you the best legal representation in debt relief matters. You can call us at either office location of Woodstock, Georgia at 678-925-3510 or Alpharetta, Georgia at 678-925-3551. You can also contact us online and put our experience to work for you.
Serving Woodstock, Roswell, Alpharetta, Canton, Fulton, Acworth, Kennesaw, Cumming, Fulton County, Forsyth County, and Cherokee County, Georgia.
