Filing Business Bankruptcy in Utah
Our business lawyers provide legal assistance to businesses in need of declaring bankruptcy. We can assist bankrupt debtors; prevent debts from being discharged, and assist businesses in filing bankruptcy. By filing for Chapter 11 bankruptcy, a business can restructure its debt and buy time for better economic times.
Bankruptcy for a Small Business in Utah
Bankruptcy law has expanded over the years to meet the needs of a variety of businesses. There are a number of options inside and outside of bankruptcy that will help you with your business’s financial situation. The way the debts impact you and your business are based upon the way your business is structured.
Chapter 11 Bankruptcy
Chapter 11 allows Utah business owners the ability to reorganize their debts. Chapter 11 Bankruptcy filings are available for all Utah businesses. Our legal team will provide representation for Chapter 11 and Chapter 7 filings.
A sole proprietor has a different financial situation than other businesses as their personal assets are directly tied into the business. Sole proprietors are personally responsible for the business debts. If there isn’t enough money to pay for the debts, the creditors can take your assets.
A general partnership holds each partner personally liable for the business debts. If there isn’t enough money to pay for the debts from the business’s assets, creditors are permitted to take your personal assets as a partner in the general partnership to pay toward the business debts.
Corporations and Limited Liability Companies
If your business is set up as a limited liability company or a corporation, your personal assets are typically protected from business creditors. You may have neglected to protect your personal assets in the agreement, which allows creditors to come after your personal assets. Some banks will require personal guarantees or personal security before they will loan you the money.
For more information about business bankruptcy in Utah, contact us at (801) 405-7827.