October 6th, 2009 by Reed Allmand 
The news headlines are filled with stories about big corporations filing for Chapter 11 bankruptcy, but what about filing Chapter 7 bankruptcy for business? Are there any benefits in filing a Chapter 7 bankruptcy for your business? Well, maybe, let’s take a look:
If a business owner wants to completely close his/her business and liquidate its assets, filing a Chapter 7 bankruptcy for their business may be beneficial. For example, if you know that your debt-laden business is dead and cannot be revived, a Chapter 7 bankruptcy filing may be wise. When a business files Chapter 7 bankruptcy, the bankruptcy trustee takes over the company’s finances, liquidates the business’ assets and distributes the proceeds to the creditors.
If a business owner owes “priority” debts such as taxes and wants to make sure that those taxes are paid from the business assets, using Chapter 7 bankruptcy to do so may be beneficial. During Chapter 7 bankruptcy, a business’ assets are liquidated and the proceeds are used to repay “priority” creditors first, so that the owner does not need to worry about paying those debts after the liquidation of the business. Be forewarned, a business entity does not receive a Chapter 7 bankruptcy discharge, discharge is reserved for individuals only. Please speak with your Dallas-Fort Worth bankruptcy attorney to find out which type of bankruptcy filing will work best for your business.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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