29 Oct Business Bankruptcy in Minnesota
If you own a small business but have a great deal of personal debt weighing you down then you should consider a bankruptcy to clear up the debt. In many cases the trustee does not have much interest in your business, because they are generally not worth more than the debt associated with your business.
This type of bankruptcy does involve more potential complications than other types of bankruptcy, so it is important to get good advice about how to deal with the bankruptcy. The small business bankruptcy requires a good accounting from the business owner, so we know if you business is profitable. We also need an accurate listing of debt and assets associated with the business. The final information we need is to determine what type of business you own. Is it the type of business that only you can run, or is it a business that has value outside of the work you put into the business. If it is a business that only you can run, then the bankruptcy trustee will not have as much interest in the business. If the business has value outside of you running the business then the bankruptcy trustee may have more interest in the business.
The risk of any bankruptcy where the owner has a 100% interest in a business is the trustee could liquidate the business. In reality the trustee will rarely use this options, because the business is underwater. In some cases if the business shows a profit the trustee may look for a settlement. In most cases if a small business would liquidate, it would not even cover all the debt associated with the business. The thing to remember when you are looking for a small business bankruptcy is it stops most of the collection activity and if you can get through the process it makes running your business easier.
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