Has your business financial situation reached the point where you need to consult a bankruptcy lawyer? At Padgett & Robertson, Attorneys at Law in Mobile, AL, they understand the pressures and challenges of running a small business. Below, these experienced lawyers discuss what to consider when deciding between filing Chapter 7 or Chapter 13 bankruptcy. 

Is Chapter 7 or Chapter 13 Right for Your Small Business?

Benefits of Chapter 7

Bankruptcy lawyers know Chapter 7 offers several benefits for sole proprietors and small business owners. There are no plan payments to maintain, you don’t have to repay creditors, and you can discharge unsecured debts including credit cards and signature loans in full. Debtors who have few or no assets to liquidate can complete the entire process in six months or less. With Chapter 7, you get a fresh start, free of debt, in a relatively short time. 

Benefits of Chapter 13

Chapter 13 is a bankruptcy option for individuals who cannot pass the means test to qualify under Chapter 7. Debtors who have valuable assets, such as real estate, inventory, or equipment may want to keep their assets—and they can under Chapter 13. The three- to five-year payment plan gives debtors time to catch up on their mortgage and vehicle payments. With the help of a skilled bankruptcy lawyer, debtors can use a “cramdown” in Chapter 13 to lower certain debt to the value of the collateral securing it. 

In Southern Alabama, individuals and small business owners turn to the skilled bankruptcy lawyers at Padgett & Robertson, Attorneys at Law in Mobile, AL, for advice and representation regarding debt relief. They evaluate each client’s situation, make individualized recommendations, and guide them through the process they choose. Stop struggling with financial burdens. Visit their website to learn more about the firm and call (251) 342-0264 to schedule a free consultation.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.