A previous post on this blog discussed how small southeastern Tennessee business owners who operate in their individual names can get help with their business debts through a Chapter 13 bankruptcy. This is because these debts are usually in the business owner’s personal name, just like his or her house loan or personal credit card. As such, they can be repaid through a Chapter 13 repayment plan.
There are a couple of things that our law office recognizes about Chapter 13 plans for small businesses. For one, they allow the debtor to keep all of his or her property so long as he or she makes regular payments according to the agreed-upon plan. This means that Chapter 13 gives the business an opportunity to re-organize its finances and get afloat again.
Also, a Chapter 13 plan can change over the course of time, particularly with respect to a business-related Chapter 13 bankruptcy. This means that if a business continues to struggle, it can make some adjustments without having to close its doors.
Of course, every struggling Tennessee business owner’s situation is different, which is why it’s a good idea for the owner to talk to a bankruptcy specialist about his or her legal options, including the possibility of using Chapter 13 as a means of restoring a flailing business to health. In the right circumstances, Chapter 13 can get a business owner the relief he or she needs and, in many cases, save the owner some debt payments and interest as well.
On the other hand, when Chapter 13 is not going to work as a means for every business to get a fresh start, we are also available to help a small business explore other debt relief options, including a Chapter 11 or Chapter 7 bankruptcy.