Business Debt Defense Lawyer Dallas, TX
Is a Business Owner Personally Liable for Business Debts and Can Business Bankruptcy Help?
Many business owners whose businesses have gotten into financial trouble wonder if they can be held personally liable for the debts incurred by their business. In addition, they are often concerned that filing for a business bankruptcy will affect their personal finances. Whether a business owner will be held liable or affected by a business bankruptcy depends on a number of factors, some of which are discussed below by a business debt defense lawyer in Dallas, Texas from Brandy Austin Law Firm, PLLC.
If you are a business owner and are being sued or harassed by debt collectors, it is important that you understand the laws that protect you and consult with a business debt defense lawyer Dallas, Texas. Just because you might owe money to certain parties does not mean that they, or their collection agencies, can abuse their right to collect the debt. There are rules and laws that debt collectors must strictly follow. Before you try to solve this problem on your own, you should have a knowledgeable business debt defense lawyer Dallas, TX help you.
With the right Dallas, TX business debt defense lawyer on your side, you and your business may be saved from unnecessary, or undue, hardship. For a consultation with the Brandy Austin Law Firm, PLLC call us now. Our business debt defense lawyer Dallas, TX is ready to fight for you and help you to determine the best solutions.
As a business debt defense lawyer Dallas, TX trusts, we protect business owners who are facing a broad range of situations, including:
– Creditor harassment
– Credit card lawsuits
– Garnishment defense
– Judgement defense
– All types of debt
Find Solutions for Your Business Debt!
If you cannot make the payments on your business debts, please give us a call. A business debt defense lawyer Dallas, TX relies on can help negotiate defaulted business loans and cash advances on behalf of you.
Unlike consumer debt that may involve credit cards, small loans, or student loans, when a company provides you with a merchant cash advance, they may file a lawsuit against you within three to six months of default. Being sued is never good, even when you have a great Dallas, TX business debt defense lawyer fighting for you. To prevent a lawsuit, it is better that you try solving the problem before it reaches the steps of the court.
Common Debt Situations
The Brandy Austin Law Firm, PLLC has helped many business owners who in need of business debt solutions after finding themselves in debt situations that involve the following:
- Business loan lawsuit
- Merchant cash advance
- Business cash advance
- Unsecured loan lawsuit
- Business credit cards
- Defaulted SBA loans
- Debts owed to vendors
- Debts owed to professional service providers
If you are finding it difficult to make the necessary payments, a business debt defense lawyer Dallas, TX can help you to resolve your business debt. A good lawyer can negotiate with the company who is seeking the debt you owe and try to:
- Reduce the interest you owed
- Reduce the percentage of interest or fees of each transaction taken by the company
- Negotiate the amount of debt owed
- Restructure the debt owed
By having more money at your own disposal, you can start to put more time and energy into building your business and becoming the best you can be so as to generate more profit; thereby, get out of business debt.
Personal Liability for Business Debts
Whether a business owner is personally liable for the debts incurred by his or her business is largely determined by the type of business entity at issue. For example, in a sole proprietorship or a partnership, the sole proprietor or partners generally have no personal liability protection from business debts. On the other hand, owners of LLCs and corporations are shielded from liability, unless an argument can be made for piercing the corporate veil.
When Does Business Bankruptcy Affect an Owner Personally?
In cases where a business owner is liable for his or her business debts, a business bankruptcy can have a direct impact on his or her finances. In the case of a sole proprietorship, no distinction is made between the business and the business owner, so any bankruptcy filed will actually be filed by the sole proprietor himself or herself. In the case of a partnership, the business is treated as a distinct entity, so the partnership itself would be able to file for bankruptcy and liquidate its assets. Importantly, however, as a partnership cannot receive a discharge, the partners would likely be liable for any debts not covered by the liquidation.
For businesses that do provide their owners with personal liability protections, the business itself can file for bankruptcy and, in many cases, continue in operation. The types of bankruptcies that are often utilized by businesses include Chapter 7, in which all of a business’s assets are liquidated and the business ceases to operate, and Chapter 11, which involves a reorganization of a business’s debts and generally allows the business to continue to operate. The appropriate type of bankruptcy in your case depends on a variety of factors, including your business’s financial situation and your long-term goals.
Contact a business debt defense lawyer Dallas, TX Today to Discuss Your Case
If your business is in financial trouble, you should discuss your options with one of the experienced business debt defense lawyer Dallas, TX clients recommend of Brandy Austin Law Firm, PLLC. Each business debt defense lawyer from our firm has extensive legal experience. Our legal team will work tirelessly to ensure that each client we take has his or her legal issues and questions resolved as favorably as possible. To schedule a consultation with a skilled business debt defense attorney, call our office today.