Filing for bankruptcy in Mississippi following a business failure

On behalf of The Rollins Law Firm posted in Chapter 7 on Thursday, August 1, 2013.

Small businesses can be expensive to get going and even more expensive if they fail. That is because, in many circumstances, the business owner will be stuck with the debts of the business and no use for any of the equipment that they have purchased.

For example, one small business owner was left wondering whether to file for Chapter 7 bankruptcy after their business failed and they were left with almost $30,000 in debt. This included $2,000 on a business credit card as well as a point-of-sale system and specialized equipment.

When making their decision, the business owner had several things to consider. First, while small business debts are often personally backed by the business owner, this is not always the case, and the owner needs to carefully review all of their agreements to determine if any of the debts ended with the business. Second, they need to look into whether any of their equipment could be repossessed or sold off in order to at least partially reduce the total amount of their debt.

The amount of the remaining debt will be a significant factor in whether to file for bankruptcy. Although Chapter 7 bankruptcy does allow the debt to be wiped, it requires that many of the debtor's assets be liquidated first. To the extent the debts were personally backed, the liquidation will include personal assets except for limited exemptions for personal necessities. A bankruptcy will also significantly damage a person's credit score and their ability to get loans or other credit for the next seven to 10 years. Because of this, a debtor should carefully review with an attorney all of their debts to explore what they actually owe and what alternative payment options are available before considering filing for bankruptcy.

Source: Fox Business, "My Small Biz Failed. Should I File Bankruptcy?", Justin Harelik, July 31, 2013

Client Reviews
I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.