If you are a small business owner struggling with debt, you need expert advice to make decisions about the future of your business. Bankruptcy can help you get out of debts you have personally guaranteed, and restructuring of the business itself can help you save your business and preserve your livelihood. If an exit strategy is what is needed, bankruptcy can help you walk away from leases, contracts and other business debts. Business bankruptcy is very complicated and requires expertise and experience. Wink & Wink offers both.
Small business owners often worry about being held personally responsible for business debt and losing business assets in a bankruptcy. This is a big burden when you’re trying to run a business while managing debt.
At Wink & Wink, we can help small business owners get rid of their personal liability for business debt, keep their business assets, and continue running the business that has supported them for so long if it is still viable.
As small business owners ourselves we understand your fears and your hopes. That’s why we will educate you on all your options in attempting to achieve these two goals.
In personal bankruptcy, many are eligible to get out of debt through a Chapter 7 or Chapter 13 discharge. However, small business bankruptcy is not so straightforward because a small business is not eligible for discharge in either Chapter 7 or Chapter 13 bankruptcy. While there is a Chapter of bankruptcy designed for businesses, Chapter 11, it is very expensive and typically not viable for most small businesses.
Because of this complexity, bankruptcy for a small business owner requires a plan. The plan we can help you develop will depend on several factors, including the structure of your business—a sole proprietorship, LLC, or corporation.
Often, it is preferable to operate as a sole proprietorship in bankruptcy because it can enable the small business owner to claim the “tools of the trade exemption”. In Colorado under this exemption, sole proprietors may keep up to $30,000 worth of business assets such as tools, business equipment, and inventory in order to make a living after filing for bankruptcy.