At Behm Law Group, Ltd., we work with individuals and small businesses filing for bankruptcy. Our experienced bankruptcy attorneys specialize in providing legal advice and assistance for Chapter 13, Chapter 7, and Chapter 12 bankruptcy. For small businesses struggling with debts and difficult financial obligations, bankruptcy might be a beneficial option. Behm Law Group, Ltd. can help local small businesses eligible to file for debt reorganization with Chapter 13 in Marshall, MN.
For any small business wrestling with financial problems, bankruptcy offers four options:
- Chapter 12, which works as a system of debt reorganization but is only applicable to family farmers and fishermen
- Chapter 7, which works as a system of debt discharge and asset liquidation
- Chapter 11, which works as a system of debt reorganization and for which most businesses are eligible
- Chapter 13, which works as a system of debt reorganization as well, but for which most businesses do not qualify
For most small businesses looking to restructure their debts, Chapter 11 is a common and viable option. However, if your small business qualifies for Chapter 13, it may be more effective to file for that form of debt reorganization instead of Chapter 11 for several reasons.
Why Chapter 13?
Chapter 13 works as a bankruptcy plan for individuals with regular income that own and operate their business with sole ownership. If your situation matches the requirements for Chapter 13 business bankruptcy, you can file a petition for yourself. This is beneficial because Chapter 13 acts more quickly than Chapter 11. For small businesses struggling with meeting current debt payments, using Chapter 13 allows them to immediately restructure those debt payments in a new repayment plan. The commitment period for repaying those debts cannot be longer than five years with a Chapter 13 plan. Debts must be restructured to fit in that time period, meaning the amount to be repaid will often be less than the amount in a Chapter 11 plan. There’s also a greater range in types of debts that can be discharged in a Chapter 13 plan than in a Chapter 11 plan.
If you’re struggling with accumulated debts and financial obligations for your small business, filing for reorganization bankruptcy is often a helpful option. To find out more information about how to qualify for Chapter 13 bankruptcy in Marshall, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.