If you’re a small business owner and are overwhelmed by your debt, filing for bankruptcy may be the best course of action for you. Finding the best option for your situation is important, especially if you plan on keeping your business open. There are two types of Bankruptcy options for debtors who wish to stay in business-Chapter 13 and Chapter 11 Bankruptcy in Fort Myers, Florida. While both of these options have similar attributes, like allowing you to keep property to keep your business open and will modify payment terms, there are some differences to understand before choosing what’s best for your business before you file.
The eligibility requirements for Chapter 13 Bankruptcy are more strict than Chapter 11’s requirements. Basically anyone in business can file for Chapter 11 Bankruptcy in Florida. There are no debt requirements and individual businesses, as well as corporations, joint ventures, partnerships, and limited liability businesses are all eligible. On the other hand, the requirements for Chapter 13 Bankruptcy include:
Even though the eligibility requirements are less strict for Chapter 11 Bankruptcy in Fort Myers, Florida, that doesn’t necessarily mean that it will be the best course of action for every business. Make sure to discuss your options with an experienced bankruptcy lawyer and weigh the pros and cons of each restructuring option.
For many, Chapter 11 has many advantages and less hoops to jump through to be able to file for this type of bankruptcy. The main advantages of Chapter 11, when compared to Chapter 13 include:
One of the biggest advantages of Chapter 13 Bankruptcy is how divorce obligations are handled. Under Chapter 13, you will be able to: