What Is Business Bankruptcy Protection?
There are few of the businesses in the field of entrepreneurship that are struggling with their debts. But, filing for a business bankruptcy can relieve your problems. Whether filing for business bankruptcy can help your business, this will always vary upon the numerous factors. These factors include the following;
- Your business legal form – for instance, is your business, a type of limited liability company, corporation, general partnership, or a sole proprietorship.
- The types and the amount of the debt of your business
- Do you want to close the door of your business or continue running it? and;
- Are you liable for the debts of your business?
In these cases, you can find details that you need with the use of Chapter 11, Chapter 13, or Chapter 7 bankruptcy. These forms of bankruptcy will help you in figuring out if you are personally responsible for the debts of your business. These will also enable you to find an answer about whether you need to get a loan or credit after you file for business bankruptcy protection. By calling our office and speaking to one of our insolvency trustee Red Deer professionals they can answer any questions that you may have.
What Are The Forms Of Business Bankruptcy?
• Chapter 7 Bankruptcy
If you are one of those business owners who start experiencing financial problems, you might consider filing for a Chapter 7 bankruptcy. It is because this form of bankruptcy will enable you to find ways on how to liquidate it or help your business to survive from falling. Our Red Deer insolvency trustees can help you out with making the best decision.
• Chapter 13 Bankruptcy
If you own a business – whether big or small- you might experience financial struggles. Some of the businesses out there are not capable of paying their debts any longer. Thus, they prefer filing for business bankruptcy. One of the forms of business bankruptcy that you might consider filing is Chapter 13 Bankruptcy. It will help you in saving your business, as well as reorganizing your debts.
• Chapter 11 Bankruptcy
With the help of this Chapter 11 Bankruptcy, it will help your business in eliminating and restricting the debts. It will also enable your business to continue running.
Business Protection: What Is It?
When you accidentally read an article about an individual or a company that is filing for business bankruptcy, the phrases, such as “has filed for Chapter 7 bankruptcy protection,” or “has declared bankruptcy and is reorganizing under bankruptcy protection.” The word “Bankruptcy protection” is being used due to the fact that filing for business bankruptcy in a court can end the entire legal proceedings, as well as collections of activities in regards to the financial and debt matters. The entire filings for business bankruptcy, such as Chapter 13 bankruptcy and Chapter 7 Bankruptcy, will instantly be placed in the Automatic Stay on the bankruptcy estate.
The automatic stay will end the appeal, enforcement, as well as the commencement of administrative or judicial, judgments and actions. From the debtor for the claim collection that was established before the bankruptcy petition filings. This will also restrict the proceedings and collection of actions that were directed to the bankruptcy estate property. Contact our Red Deer insolvency trustee office today for a FREE consultation. See how we can be of help today!