When a business fails and needs to shut down, it might be necessary for the owner to file for bankruptcy. This decision may depend on the company’s current assets, the willingness of creditors to work with you and whether you have the time or ability to oversee the bankruptcy process.
Either the business owner or creditors may start the bankruptcy proceedings. Once it starts, the owner may no longer sell or transfer the business’s assets and creditors are prohibited from pursuing money owed to them from the debtor. It’s also important to understand that limited liability companies (LLCs), corporations and partnerships may file for bankruptcy, but for sole proprietorships, the owner must do so on his or her own.
There are several options available:
If you own or operate a small business and need to learn more about the bankruptcy process in Florida and which option might be right for you, it’s important to work with an experienced Jacksonville attorney at Combs Greene, PA.
Attorney Shane Herbert also contributed to this blog post.