Posted On: May 1, 2010
How Small Business Owners Can Discharge Debt in Chapter 7 Bankruptcy Filing
A Jacksonville bankruptcy lawyer says that small business owners may be able to discharge business debts by filing Chapter 7 consumer bankruptcy.High unemployment rates have created a lot of sometimes-reluctant entrepreneurs. Add that to the fact that most small businesses suffer from a fairly large failure rate, and you wind up with a fairly large number of small business owners in big financial trouble.
Generally, by filing a Chapter 7 bankruptcy, a small business owner can discharge his obligation on his business debts. This is because a Chapter 7 bankruptcy allows you to discharge your personal obligation to pay the business debt. And since most of your business debt was probably secured by a personal guarantee, this qualifies that business debt as one that can be discharged in Chapter 7 bankruptcy.
Other Chapter 7 dischargeable debts include leases, guaranties, negligence claims, tax penalties over three years old, personal loans, credit card debt, repossession deficiencies, auto accident claims, medical bills and judgments.
If you are a small business owner and need more information on how a Chapter 7 bankruptcy filing might help you, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
