The United States Congress has recognized the economy of the past 5 years has been rough on small businesses which are often considered to be the backbone of this country’s economy. The Federal bankruptcy law has been updated to make it easier for a small business to declare bankruptcy, but the effects of declaring bankruptcy are much harsher than those previously in effect.
However, if the small business is a single proprietorship the rules of personal bankruptcy still apply. Incorporated businesses face a different problem but one with a less favorable disposition. Regardless, bankruptcy means giving up certain assets which are over the statutory limit and a restriction on starting a new business.
The bankruptcy court may require a restructuring of the business and the business debt. The intent is to allow the business to return to a somewhat normal operating efficiency, but the law imposes a burden on doing so.
Small Business Bankruptcy in Indianapolis requires an attorney who is trained and experienced in bankruptcy filing. This is the person who can ensure the law’s favorable provisions will apply to you. Bankruptcy law is a highly specialized law with many features to recognize and take into consideration. The state you live in will have a bearing on how the law specifically affects you.
If you are contemplating bankruptcy, then it would be wise to consult with a lawyer who works in Small Business Bankruptcy in Indianapolis as soon as possible. There may be steps you can take early which will protect your assets legally. The plan that works best is to be totally aware of what you are going to face when you declare small business bankruptcy. You also want to know how filing now will affect your chances of borrowing money to start a new business later.
Incidentally, if you are a loved one are disabled and this is impacting your business you should consult a Social Security Disability Attorney in Indianapolis, IN for advice on how to file a claim for disability benefits. Even if your disability is not the cause of your filing for bankruptcy, you still need to be sure that you collect Social Security Disability Benefits which you are entitled to.
