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Do I have to close my small business when it files for bankruptcy?

It depends on what kind of business you own and what kind of bankruptcy protection you file for.

There are some questions you should ask yourself, though.

The most important is, “Is my business still viable?” If you accrued debts during a market downturn but the market has turned around, it’s possible you can grow your way back to health.

But if the market has simply changed, or you provide a product or service that isn’t needed, or that others provide at a better price, you may find that bankruptcy is a good way to close up shop and move on to your next endeavor.

If your business entity is a sole proprietorship, you can file for personal bankruptcy protection under Chapter 7 or Chapter 13.

For LLCs and corporations, your options are typically limited to Chapter 7 liquidation or Chapter 11 restructuring. Under Chapter 7, your business will close and its assets will be liquidated.

The attorneys at Zelenitz, Shapiro & D’Agostino don’t just handle bankruptcy – we work with clients to build strategies for their future.

If your business is struggling with debt, call us today at 718-599-1111 and talk to an experienced Queens bankruptcy attorney for free.