When people hear the term “small business bankruptcy,” images of overdue bills, piles of bank statements, and empty pockets often come to mind.
However, filing for bankruptcy doesn’t have to mean giving up your business forever or falling into financial ruin. In fact, a business bankruptcy will not affect you individually unless you guaranteed business debts or your business is a sole proprietorship.
Filing for bankruptcy may allow a business to eliminate some debt while restructuring their organization and staying in operation. Before pursuing any chapter of bankruptcy, it’s important to determine whether you are filing on behalf of yourself or your business.