Running a business comes with its financial ups and downs. Unfortunately, some Louisiana businesses may struggle more often or face a sudden blow to their operations. In these cases, it is possible that bankruptcy may be a needed option in order to find debt relief.
If the situation has become too much to overcome, businesses could file for Chapter 7 bankruptcy. This options involves liquidating business assets in order to repay creditors, and in the end, the business will have to close. Sole proprietors tend to utilize this form of bankruptcy more often than other types of business entities. However, limited liability companies, corporations and partnerships could also file for Chapter 7 if they deemed it necessary, but only sole proprietors can obtain a discharge of debt.
If business owners hope that they can keep their companies running, they may want to look into Chapter 11 bankruptcy. The company can continue running during the process, which involves having their debts reorganized. In order to qualify, the business must still have regular revenue streams. While Chapter 13 could also be a potential reorganization option, it can only be used by sole proprietors.
No matter the type of bankruptcy utilized for debt relief, it is a major decision to choose to move forward with the process. If Louisiana business owners feel that it could suit their needs, they may wish to further review their options. Enlisting the help of experienced bankruptcy attorneys could help them obtain insight and guidance in regard to their specific situations and how to work toward the best possible outcomes.