No one goes into business expecting to fail, but the statistics are often grim. According to the Bureau of Labor Statistics, roughly 20% of small businesses close within the first year. When a business goes under, an owner may be stuck with thousands of dollars in debt—but it doesn’t have to be forever. Here, business owners can learn more about Chapter 7 bankruptcy in San Jose.
What Is Chapter 7?
There are a few different bankruptcy options in the US. Chapters 13 and 7 are available to business owners and individuals, while Chapter 11 is only available to businesses. This article focuses on Chapter 7. It is sometimes called “straight” bankruptcy, because some assets are sold to repay creditors. In most cases, filers don’t have to turn over any property to the state.
What Happens After Filing?
When a business owner files for Chapter 7 bankruptcy in San Jose, the courts put an automatic, yet temporary stay on all their debts. Creditors can’t collect payments, garnish wages, evict the owner from a property, or turn off utilities. A trustee will be assigned to the case; they will review the business owner’s finances and oversee the process.
File for Chapter 7 and Move On
If a business owner believes they could benefit from Chapter 7 bankruptcy in San Jose, they should call the Shulman Law Office today. Filing for bankruptcy is an arduous task, and it’s easy to have a case dismissed due to technicalities. A bankruptcy attorney ensures an accurate filing and reduces the risk of errors. Call for more information or visit to schedule an appointment.
