Some of our Escondido readers may have seen recent posts here regarding bankruptcy exemptions and the importance of considering these various exemptions while planning a bankruptcy filing. There is no question that bankruptcy exemptions can play a critical role when an individual or family is facing the decision of whether or not to file for bankruptcy, but what about those individuals who are small business owners?
The owner of a small business is considered to own that asset, and as a result the small business will be part of a bankruptcy filing. Small business owners pour their hearts and their time into setting up and operating the business, so having the business connected to a personal bankruptcy filing can be difficult to handle. But, in many situations, beyond the business assets that may come into play in the process of putting together an exemption plan, there could be major tax considerations that will be part of a small business owner's decision on whether or not to file for bankruptcy.
At our law firm, we attempt to help small business owners consider the necessary factors that go into filing for bankruptcy, whether it is under Chapter 7 or Chapter 11. Both types of bankruptcy have their good points, as well as some disadvantages, that need to be considered.
At our law firm, we also do our best to explain the possible tax implications that can come into play for a small business owner. But, as important as the tax aspects and exemptions in a bankruptcy filing might be, those aspects are just two parts of a bankruptcy filing. Small business owners who are considering filing for bankruptcy have a lot to think about, and those who would like more information on this topic can visit the bankruptcy exemptions section of our website.