Liquidating Your Business Through Chapter 7 Bankruptcy
When your business faces more debt than your assets can cover, you may be eligible for Chapter 7 bankruptcy. Bankruptcy law allows for businesses to liquidate their assets to cover their debts, but only under certain conditions. You will need an experienced bankruptcy attorney to help you determine whether Chapter 7 is the right option for you.
I am Kell C. Mercer, and I focus my practice on helping businesses through the bankruptcy process. With over 20 years of experience, you can be confident I understand the intricacies of bankruptcy law as it applies to businesses. I assist small and medium businesses throughout Texas, and I am even available to travel nationwide. I also assist trustees, creditors and receivers.
What Debt Can You Discharge Through Chapter 7?
Businesses use Chapter 7 to file for bankruptcy when they wish to wipe out, or discharge, their debt. If you choose this option, you should know that you may need to liquidate some or all of your business assets to pay your debts. Depending on your company’s situation, you may have little or no assets to continue the business at the end of the process.
Another important thing you should know is that not all debt is eligible for discharge through bankruptcy. For example, you cannot discharge any of the following debts:
- Debt owed due to negligence
- Fraudulently obtained money
Chapter 7 bankruptcy should not be entered lightly. I will make sure you consider all aspects of the process, as well as other options available, such as Chapter 11 bankruptcy. If you do move forward, I will be there to help you with each step.
Discuss Your Options With Me
Together, we can determine if Chapter 7 is the best route for you and your business. I will walk through all options with you. Contact me online today to schedule a consultation or call my Austin office at 512-855-6056.