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This video features David Shuster, a Bankruptcy attorney based in Texas.
Could bankruptcy help me if I need to close my small business?
Bankruptcy is sometimes a bad word. Negative connotations are attached to it. It is a very valuable tool in the small business owners' tool chest if they're looking to close things down, particularly if they're personal guarantors on everything, which it seems like that's the thing nowadays. We have personal guarantors, they are signed with vendors, we have CEOs of companies that are forced to personally guarantee everything. So, a bankruptcy is a really good way to mop up the mess afterwards. Even if you make a pretty good living, if this is debt that you have the majority as a result of this business, then you don't have to pass the means test, you can make a much better living than is required to actually qualify for a Chapter 7, like you can be a good income earner, which oftentimes I have clients that have full-time jobs and then they somehow still managed to have this business, whether it's a restaurant or something else going on over here. So they think because they have still money coming in from the job, maybe their wife has money coming in from her job or vice versa, then they think that they're gonna just be stuck paying this back. And so bankruptcy is a very valuable tool to mop everything up in an efficient fashion.
Disclaimer: This video is for informational purposes only. In some states, this video may be deemed Attorney Advertising. The choice of lawyer is an important decision that should not be based solely on advertisements.
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