- Author: George Haines
- Published
Bankruptcy For Small Business Owners in Nevada: What Happens To My Personal and Business Assets in Bankruptcy?
Bankruptcy for Sole Proprietors in Las Vegas.
A sole proprietorship is an unincorporated business structure owned and run by one individual with no distinction between the business and the owner.
Sole proprietors may consider bankruptcy if they struggle to manage their debt or lost income. Often but not always, a sole proprietor may use Chapter 7 after a business closure.
The benefit of Chapter 7 bankruptcy for sole proprietors is the discharge of both qualifying business and personal debts. It is a real opportunity to start fresh. The downside is that some (but not all) personal and business property may become a part of the bankruptcy estate. It is important to know that many important assets (such as some equity in a home or a car) will generally be protected by bankruptcy exemptions.
If you are considering filing bankruptcy but have doubts or concerns, the best way to find out if bankruptcy is the best option for you is to consult with an experienced bankruptcy attorney for free.
At Freedom Law Firm, we offer free initial consultations conducted over the phone or via Zoom: please request a call-back by submitting a short online form.
Bankruptcy for LLC Members in Las Vegas.
The impact of bankruptcy on an LLC generally depends on the type of bankruptcy.
A Chapter 7 bankruptcy proceeding would generally be used to liquidate businesses that are no longer viable. An LLC is a separate legal entity, which means that post-bankruptcy, creditors may not come after LLC members personally for the debts of the business.
Scenarios where LLC members may still be responsible for the LLC debts post-bankruptcy include situations where they personally guaranteed any of the debts.
For businesses that could still be viable if their debts were restructured, a Chapter 11 could be a good option. In Chapter 11, LLC members have an opportunity to reduce company debt and put forward a repayment plan that will allow the company to stay in business.
If you are considering filing bankruptcy but have doubts or concerns, the best way to find out if bankruptcy is the best option for you is to consult with an experienced bankruptcy attorney for free.
At Freedom Law Firm, we offer free initial consultations conducted over the phone or via Zoom: please request a call-back by submitting a short online form.
