Being in business as a sole proprietor often brings unique financial challenges that corporations simply don’t have to deal with. This is because sole proprietors have to take personal responsibility for your business debt. Consequently, things can get messy quickly, and you can find yourself in deep financial trouble. Fortunately, these is help for those who have experienced this type of distress. Keep reading to find out how an attorney can help keep you out of hot water with Chapter 13 bankruptcy:
Discharge Business Debts
Many business owners -; including sole proprietors -; use unsecured debts like credit cards in order to maintain the cash flow they need to keep their businesses afloat. Unfortunately, some of these same business owners fail to realize that they’ll have to personally pay back that debt if the business isn’t making enough money. If this scenario has put both your business and personal finances in jeopardy, Chapter 13 Bankruptcy attorneys St. Paul MN can help showing you how to get your nonpriority debts (including business debts) discharged once you have completed the requirements of your payment plan.
Take Advantage of Cramdowns
A cramdown is a tool that Bankruptcy attorneys St. Paul MN can share with business owners who are upside-down on a mortgage or car loan can use to reduce the amount owed on the debt to the current value of the property. This can be a lifesaver for business owners who simply find that their monthly bills are too high for them to keep up with the payments. Reducing the amount you owe overall has the added benefit of also reducing your monthly payment, which can significantly ease your financial burden.
Hold On To Assets
Business owners need their assets in order to remain in operation and make money. The good news is that Bankruptcy attorneys St. Paul MN can use a Chapter 13 bankruptcy strategy to help you keep them. If you have enough disposable income, you’ll be able to come up with a viable repayment plan that will fairly compensate creditors while allowing you to hold on to what you need to stay in business.
Don’t let your business debts ruin your personal life. Instead, call a bankruptcy attorney from Lamey Law Firm St. Paul MN to help you understand what options you have available to correct your situation. With the right help, it’s possible to get both your business and your personal life on the right track. Click here for more information.
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