When deciding to start your own small business, you may have accepted the fact that there would be some financial risks. But you may have never anticipated that it would go so beyond reasonable control that you feel forced to file for bankruptcy. Now, the very thing that you worked so hard to build up by yourself may be on the line. If this is your current predicament, please follow along to find out whether you can keep your small business while pursuing a bankruptcy filing, and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can take whatever measures necessary to make this conceivable.
Is it possible to keep my small business while filing for bankruptcy?
Filing for Chapter 13 bankruptcy may be your best bet to continue operating your business. This is because you may submit to a court-ordered repayment plan. Here, you may repay your debts over the course of three to five years in exchange for keeping your small business up and running. Hopefully, you can build more stability with time, allowing your monthly repayments to come easier, and allowing yourself to be in a better financial standing once your case is closed.
However, if you are in the beginning stages of your small business, your income may not be steady enough to qualify for Chapter 13. This may leave you with no choice but Chapter 7 bankruptcy. With this bankruptcy type, there is a greater possibility that your business assets may be liquidated. That is, your appointed bankruptcy trustee may exercise their authority to do so to pay off your outstanding creditors.
What kinds of business assets can I keep in a Chapter 7 bankruptcy?
You may rest easier knowing that, even if you have to file for Chapter 7 bankruptcy, some of your bankruptcy assets may qualify for Kentucky bankruptcy exemptions. For example, you may protect up to $1,000 worth of your tools of the trade and other professional equipment. Then, a general exemption of approximately $3,00 may be applied to your household goods, with which your personal office items may technically count.
Also, you may apply up to $3,450 for a motor vehicle, and this can include your business-operated vehicle. Lastly, there is the wildcard exemption of $1,000 to put towards any property of your choice, which can be your final effort toward protecting your business assets. Importantly, these state exemptions cannot be used if you opted for federal exemptions for any of your property.
Just because you are used to relying on yourself as a self-employed individual does not necessarily mean that you have to go through the bankruptcy process alone. Rather, it would greatly benefit you if you turned to a talented Louisville, Kentucky consumer bankruptcy lawyer for legal assistance. Employ the services of Schwartz Bankruptcy Law Center today.
