No one ever said that running a small business was going to be easy. With the explosion of start-ups in recent years, it has become quite common for an entrepreneur to go through several incarnations of a business before it works.
Bankruptcy can be an important tool that helps business owners regroup to try again.
While it will probably never be a pleasant experience, some of the pain and problems associated with bankruptcy can be elminated when armed with basic information. To help a small businessperson determine which chapter is most beneficial to them, Gregory Dean, Assistant Advocate of the Small Business Administration, recommends finding an attorney. Bankruptcy law and procedures are very complicated, and there are always a lot of recent changes that can have important ramifications on the outcome of your case. Any business or individual can apply for protection from creditors under Chapter 7. In this case, the business is lost, but the business owners or individuals rid themselves of debt.