Business Bankruptcy for Central Florida
Who we help
We help corporations, LLCs, partnerships, and sole proprietors, as well as owners facing personal liability for business debts. Your business structure, income, assets, and goals guide which options are available.
- Chapter 7 for corporations, LLCs, partnerships.
- Chapter 13 for sole proprietors who qualify and want to keep operating.
Chapter 7 for business entities
For a corporation, LLC, or partnership that cannot continue, Chapter 7 provides a court-supervised process for an orderly wind-down. A bankruptcy trustee takes control of the bankruptcy estate, administers business assets, and distributes available proceeds to creditors according to bankruptcy law.
Filing generally triggers an automatic stay that stops most collection activity against the business. Exceptions apply, and creditors may ask the court for permission to proceed. Business entities do not receive a Chapter 7 discharge, and the filing does not automatically eliminate an owner's personal obligations.
Chapter 13 for sole proprietors
If you operate as a sole proprietor, your business and personal debts are part of your own financial picture. Chapter 13 may allow an eligible owner with regular income to keep the business running while making payments through a court-approved plan, usually over three to five years.
Eligibility, the ability to fund a plan, and ongoing business obligations matter. Corporations, LLCs, and partnerships cannot file Chapter 13. We review your finances before recommending a path.
Personal guarantees and owner liability
Signing a personal guarantee can make you responsible for a company debt. Other obligations may also create personal liability, depending on the facts and business structure. A business bankruptcy generally does not protect an owner from collection on a personal guarantee.
We review the owner's obligations alongside the business's debts and help with the owner's own personal bankruptcy when needed. Not all debts can be discharged. You can also read about our personal bankruptcy services.
Options beyond bankruptcy
Bankruptcy is not always the answer. We also negotiate with creditors and consider alternatives that fit your finances and goals. Before you decide, we will talk through what each option may mean for your business and for you personally.
Business bankruptcy questions
Yes. An LLC can file Chapter 7. A trustee administers the company's assets and distributes available proceeds to creditors under bankruptcy rules. Business entities do not receive a Chapter 7 discharge, and this is generally a path to winding down, not keeping the company operating.
It depends on the business structure and the debt. A personal guarantee can make you responsible even if the debt belongs to your corporation or LLC. Sole proprietors are personally responsible for their business debts. We review guarantees and other possible sources of owner liability with you.
An eligible sole proprietor with regular income may be able to keep operating through a Chapter 13 repayment plan. Corporations, LLCs, and partnerships cannot file Chapter 13. Chapter 7 for a business entity generally involves winding down operations. The options depend on your income, debts, assets, and goals.
Not automatically. A company's bankruptcy generally does not stop creditors from pursuing an owner on a personal guarantee. We can review whether creditor negotiations or your own personal bankruptcy may help. Not every debt can be discharged.
No. Bankruptcy is not always the right answer. We also negotiate with creditors and review alternatives based on your business's finances, owner liability, and plans for the future.
Let's schedule some time to talk
A free, confidential 45-minute consultation for bankruptcy matters is the first step toward peace of mind.