Small Business Bankruptcy Lawyer in Greensboro, NC
Skilled lawyer presents all your options before you file for bankruptcy
At Blalock Law Office, P.A., I have always taken pride in our one-on-one counseling sessions. These sessions allow you to understand the law better and allow me to understand your situation and challenges better. I always provide you with all your options before recommending any one course.
Before you declare bankruptcy, there are alternatives that may be more advantageous. The first is to do nothing. While doing nothing is not always advisable, if the financial stresses are temporary or likely to work out in time, this can be your best option. If it does not look like your business will improve, you can close it and liquidate its assets. While this is similar to a Chapter 7 bankruptcy proceeding, you may get a higher price for assets and more favorable debt settlements prior to your filing. Another option is to sell the business outright to either pay off your debts or assign them to the new owner as part of the sale. Please note that any settlement with debtors or assignment of debt could be seen as income by the IRS and prompt additional tax considerations.
Handling Chapter 7 bankruptcies for small businesses in High Point
At Blalock Law Offices, our attorney handles business bankruptcies. Chapter 7 business bankruptcy is also a liquidation procedure. Handling business debts through bankruptcy is similar to personal debts, but it first requires an inquiry into how your business in structured. If your company is unincorporated and you are personally liable for your business debts, Chapter 7 liquidation is effective for all dischargeable debts. However, if your business is incorporated in a way that shields you personally from business debts, you have to use special Chapter 7 procedures. The special procedures allow the trustee to liquidate your business and sell the proceeds to satisfy debts.
Knowledgeable attorney explains the tax implications of a business bankruptcy
The general rule is that if a debt is canceled through a bankruptcy proceeding, that value is taxable. Additionally, any unpaid tax debt held by the business is assigned priority in the process. Priority debts are paid according to the order in which they are assigned.
Contact us today for guidance with business bankruptcy
Business bankruptcy can be a complex and confusing area because of corporate structure and taxation concerns. If you have questions regarding bankruptcy and your small business, call us today at 336-609-6878 or online.