In Missouri, business owners who face an overwhelming volume of debt need a realistic solution. Through bankruptcy, they can settle their debts through liquidation. The process in basic is the same as a consumer liquidation; however, it has stricter provisions about how it is managed. The following are questions a client should ask a corporate bankruptcy attorney in St. Louis.
Does the Business Owner Acquire Exemptions?
No, as a business owner, they are in business to make money. It isn’t the same as a consumer who is facing dire financial circumstances. The state doesn’t allow corporate owners to claim any exemptions in their bankruptcy, and for this reason, they must sell all their property to acquire funds to pay their creditors. Unlike consumer-based chapter 7, they don’t get to discharge any of their debts through these claims.
What Happens If the Owner Is Personally Liable?
Any debts that are linked to the company but owned by an individual remain responsibility of the individual. This means that if the debt isn’t included in the bankruptcy and settled they must pay it. If the individual doesn’t pay it, the creditor has the option to seize personal assets to settle the debt. Even if they have a corporation or LLC, they aren’t immune to property or asset seizure. This may also include foreclosure for select assets.
What Are the Stipulations for Filing Chapter 7?
The business owner must shut down the business entirely. Essentially, they are selling their entire business and all connecting assets. They cannot use the business itself to generate income. By filing a chapter 7 business bankruptcy, they cannot operate the business as it will create more liabilities. They must shut the doors of the business and terminate employment for all workers. The court takes possession of all assets and properties connected to the business as a whole.
In Missouri, business owners liquidate their assets and properties to settle their debts. These proceedings require them to sell all portions of their business to pay off all their debts. They can no longer operate their business once the case begins. Business owners who need a corporate bankruptcy attorney in St. Louis visit Stlbankruptcyfirm.com for more info now.