Small Business Bankruptcy
SERVING PORTLAND OR – BEAVERTON – BEND OREGON
Financial hardships can place an enormous strain on small business, and may even require bankruptcy filing. Small business bankruptcy is always a difficult decision, but it could be in the best interest of your small business. If your company is drowning in debt, with no sign of relief, consulting a seasoned small business bankruptcy attorney is the best option to move forward financially.
Filing for Small Business Bankruptcy in Oregon
Before you file for small bankruptcy, there are some details you should carefully consider:
- The courts will need your complete financial information including assets, debts, expenses, and income.
- As the business owner, you will be required to take debt counseling and debt management courses. They typically take less than two hours each.
- You may be harassed by debt collectors, and there may be wage garnishments as well.
Filing for small business bankruptcy does not necessarily mean the end of your small business. Business bankruptcy in Oregon can help you restructure your finances and get you back on track, all while keeping the doors open. Filing for bankruptcy and completing the process also typically means the end of debt collector harassment and wage garnishment.
Debt Relief for Business Owners
You’ve worked hard for what you have, whether it was your first van as a plumber or your first retail space. Your hard work will not be in vain, and we can help you get back to business. While the process of filing paperwork and declaring legal bankruptcy can be overwhelming, it’s very important to make sure you’re following the correct order and timeline of filing. We know how devastating it can feel to declare bankruptcy, but the Law Offices of George Hoselton want to help! We have decades of experience with small business bankruptcy cases, and we can guide you through the process, step by step.
Types of Small Business Bankruptcy in Oregon
- Chapter 7 bankruptcy will involve complete liquidation of every asset, and there is no option to reorganize or avoid foreclosure.
- If your small business is not a separate legal entity, everything you personally own can and will be sold off to pay your debt.
- When filing Chapter 7, your business ends immediately. There is no option to use your incoming business income to pay off any debts or prevent liquidation.
- Chapter 13 bankruptcy is an opportunity to restructure, and your business stays open while you continue working and making payments.
- Only available to small businesses with sole proprietorship.
- There are no limitations on how much debt is covered by the bankruptcy.
- Chapter 13 will discharge some of your unsecured debt, like credit cards, but it may not forgive all of it.
- You will generally owe debt payments to the appointed trustee for 3-5 years.
- Your business remains open, but all of your assets are under a trustee’s care. You cannot sell or liquidate assets without getting the approval of the trustee.
What Needs to be Paid During and After Bankruptcy?
Each type of bankruptcy determines what needs to be paid and what debt is discharged. Generally, payroll is given first priority, making sure that any employees are paid in full. Other items like payroll taxes, utilities, leases, and worker’s compensation are evaluated separately, depending on the kind of bankruptcy you file for. This is just another reason why working with a bankruptcy attorney can be so helpful: bankruptcy law is complicated and time-consuming, and every case is different. This is why we encourage every small business to consult an attorney; while bankruptcy can be a time-consuming and very costly legal decision, we can help you to determine which type of bankruptcy should be filed, and how your business can restructure and possibly remain in business.
Does Your Small Business Need A Small Business Bankruptcy Attorney?
For trusted advice from an experienced small business bankruptcy attorney, call the Law Offices of George Hoselton today. It is important you know your options, so you can preserve your business and get your finances on the right track. Attorney George Hoselton can employ creative and practical solutions so your small business can sustain itself for many years to come.
Small Business Bankruptcy in Portland, Beaverton, and Bend OR
Serving Clients in Portland - Beaverton - Bend OR