Running a business is challenging in any economy, but keeping one afloat in these hard economic times can extremely difficult. A business owner might have made the mistake of buying a professional building hoping to get tenants to offset the mortgage. He thought eventually the building and land would be a wise financial investment. However as other businesses failed, there was no one to rent the office space. The soft real estate market made it impossible to sell. As revenues continued to fall, the business owner could no longer pay their monthly bills. It was definitely time to hire the Best Bankruptcy Attorney In Wichita, KS to help develop a reorganization plan.
Chapter 13 in commonly used by business owners to get their business back in the black. Sole proprietors and certain partnerships, which are not considered separate entities from the business may use Chapter 13. When the business owner arrives for their first meeting with the bankruptcy attorney at Case, Moses & Zimmerman, they should bring all the documents that created the business. This will help the attorney determine which chapter of the bankruptcy law applies to that particular situation. Corporations are their own entity. Therefore, Chapter 13 can’t be used by the founder to declare bankruptcy .
Once the lawyer has filed the bankruptcy application a judge will review it and appoint a bankruptcy trustee to oversee the process. He will review all of the business and personal expenses the debtor has. They will then be put on a strict budget for a period of three to five years. Hiring the Best Bankruptcy Attorney In Wichita, KS ensures that the trustee will create a fair and livable budget. This is important because the debtor has to complete the entire period for the remaining debt to be forgiven. If they fail to complete even the last month, then they will be liable for all of their debt.
Chapter 13 is preferable over Chapter 7 because it allows the business owner to keep non-exempt property and run their business with it. In a Chapter 7 bankruptcy it would be sold and the profits given to creditors. However, the business owner must be ready to pay the creditors the dollar amount equal to the value of the non-exempt property.