QUESTION
What can I do if I am unable to pay business debts?
Asked on Dec 01st, 2011 on Bankruptcy - Hawaii
More details to this question:
I am unable to pay business debts, and looking for temporary options, if available. Your time and advice in reading this is much appreciated. I am unable to pay a few business debts and wondering what is available? My company has few business debts, and they will be paid as soon as I can, however right now there are too many financial problems. Is there any 'business bankruptcy' or financial status that I can claim? Even if only temporarily? As much as I feel terrible that these invoices can't be paid, it is not going to happen today, and I am looking into a business loan too. These are invoices from freelance employees, not vendors or other companies. Is there any temporary financial legal move I can make, so that I can try to avoid small claims court cases or collection fees? I don't want to declare personal bankruptcy but am wondering about other options.
7 ANSWERS
You may qualify for a chapter 11 bankruptcy, business reorganization. You need to arrange a consultation with an attorney who can describe the different options available to you.
Answered on Dec 05th, 2011 at 2:49 PM
Bankruptcy Attorney serving Hampton, VA
at
Haven Law Group, P.C.
Update Your Profile
The only way to stop the lawsuits without the creditors agreement is if you file bankruptcy. Your business can file bankruptycy. However, depending on how your contracts are structured, you may need to file personally. You really need to schedule a free consultation to sort through all of your options.
Answered on Dec 05th, 2011 at 1:27 PM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
You mention having a business but don't mention whether you own a corporation or an LLC. It makes a big difference as to what you can do in bankruptcy. If you are not a corporation or an LLC then a Chapter 13 plan might be the answer to keep the business going but all that requires analysis of your debts, income and assets. You need a consultation with an attorney to review your entire situation and determine the best alternative.
Answered on Dec 05th, 2011 at 10:37 AM
Chapter 11 is an option for you and your business. It lets individuals and businesses reorganize their debts. If is used by big companies like American Airlines and General Motors, by small companies, and by individuals.
Answered on Dec 05th, 2011 at 10:25 AM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
The best option on a short term basis is to communicate with your creditors. You can make a temporary payment arrangement. Or you could send each creditor a small payment such as $20 with a note that this is only temporary. Filing bankruptcy for your business is a last resort. If the business is a sole proprietorship it would be a personal bankruptcy. You might also want to hire a credit counseling service, but beware of who you choose.
Answered on Dec 05th, 2011 at 9:42 AM
If you business is incorporated you could filed a separate bankruptcy just for your business. Otherwise your bankruptcy would show up as a bankruptcy on your personal credit report. On the positive side of things, a bankruptcy where most of the debts to be discharged are non-consumer (i.e. from a business) does not have to comply with the means test, meaning that you can file a chapter 7 bankruptcy even with a higher income than you might otherwise be able to file. Every situation is different though. Contact an attorney in your area to discuss your situation in more detail. Good luck!
Answered on Dec 05th, 2011 at 9:41 AM
Bankruptcy Attorney serving Honolulu, HI
at
Abelmann Peterson LLLC
Update Your Profile
I don't think there are any options for your in the bankruptcy realm - if you want to continue your business, you would have to file a chapter 11 bankruptcy, a so-called reorganization, which is usually work and cost-intensive. Unless the debts you are not paying or "delaying" are substantial, I would suggest to work on obtaining a business loan or work debt repayment plans with the creditors.
Answered on Dec 05th, 2011 at 9:24 AM