Does my business bankruptcy affect my personal life?

business bankruptcyOwning your own business could be a personal dream. While many people dream to own their own small businesses, keeping a business open and profitable can be very challenging. In some situations, a company may go out of business and will have to declare bankruptcy due to the amount of debt that it has. If you own a business that has to declare bankruptcy, a natural concern is whether or not the declaration will impact the rest of your persona financial life. The impact that the bankruptcy will have on you personally will vary based on a variety of factors.

Structure of Business

The first factor that will impact your business is the type of business that you structured. When working with bankruptcy lawyer Brighton Beach area business owners will first need to understand how their business was structured. The Ursulova Law Offices will work to understand if you have a sole proprietorship, a general partnership, or if you established a LLC. If you have a LLC you are generally not personally liable for any business losses. However, owners of a sole proprietorship or a general partnership will likely still be found liable.

Personal Guarantees

Another factor that will influence whether you are personally liable is if you have any personal guarantees. While the owner of a LLC may not have any direct liability for business losses, many business owners end up signing personal guarantees with vendors and lenders. In these situations, you may be required to pay back the creditors with personal assets.

Certain Types of Taxes

If you have fallen behind on payroll taxes, business taxes, or other federal and state taxes, the IRS may still require that you make restitution. This may include setting up a payment plan until you are back into compliance. Not following through with this repayment plan could have a very negative impact, including fines and other severe penalties.

If you have a business that is struggling, contacting the Ursulova Law Offices to learn your options. When hiring this bankruptcy lawyer Brighton Beach area business will receive great guidance and support to ensure they make the right filing decision. Contact us today to dicuss all your options.


Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.


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