Question: I started a business in Alpharetta about 2 years ago. I live in Cumming, GA. We do consulting for companies. But things have not been good. The business has a lot of debt. We bought equipment and I have 7 employees. I have a lot of credit card debt and I owe taxes to the IRS and the state of Georgia. I was wondering if a business can file a chapter 7 bankruptcy. I know businesses file different types of bankruptcy petitions than do individuals, but I heard that a company file a chapter 7 under some circumstances. I need to close the business and can’t afford to pay back all the debt. My friend who lives in Milton, GA filed a chapter 7 with his small business but is it really rare? My business needs to go bankrupt. I need help as soon as possible.
Answer: A business can file a chapter 7. A large business can file a chapter 7 and a small business can file a chapter 7. Many business owners may not be aware that they can file a chapter 7 business bankruptcy petition just like an individual can. A chapter 7, generally speaking, is utilized to discharge (that is eliminate) a business' debt. We have seen all types of businesses file a chapter 7, including restaurants, tech companies, retail stores, consultancies, car dealers, medical offices, construction companies, real estate developers, beauty salons, dance schools and not-for-profit companies.
A bankruptcy attorney can advise you of the best way to proceed after carefully reviewing your situation and doing a full financial assessment.
We are aggressive, knowledgeable and experienced bankruptcy attorneys. Our experience includes serving as a magistrate judge, an assistant county attorney and an assistant attorney general. This experience tremendously benefits our clients. At the Sherman Law Group we try to answer as many questions as possible on our blog. If you have a question, email it to us and we'll do our best to answer it. No names will be used. Speak to experienced bankruptcy lawyers at the Sherman Law Group at (678) 712-8561 so we can evaluate your case.