You can see the writing on the wall. For reasons out of your control, your business is going to have to close its doors. You have more debt than you can afford. You’re going to need to use bankruptcy to get out of it.
For a business owner, this can be a very difficult decision. But what makes it even harder is if you’re worried about losing personal assets. If the business goes bankrupt, could you lose your home? What about other personal assets? Is this going to change just your career or every aspect of your life?
What type of business do you have?
The big question here is just what type of business you run and how it has been set up. For instance, if you’re just running it as a sole proprietor, your own assets could be at risk. You’re essentially just an individual conducting business under your own name, and the lack of division between the two could give the lenders the ability to come after personal assets.
If, on the other hand, you have a limited liability company (LLC), that limit on liability applies to your personal assets. You will lose your non-exempt business assets, as they’re sold to pay your debts, but the lenders can’t force you to sell your home. Only the company itself is liable. You personally are not.
Protecting your life
Bankruptcy can be very useful and beneficial when used properly, helping to set up a positive future. Make sure you know exactly how the bankruptcy process works and what steps to take.