Times as they are, there are an increasing number of small business owners who are wondering, How Do I Dump My Small Business. For the few who engaged counsel, formed corporations or LLCs, kept borrowing to a minimum, and only owe debts to vendors and landlords who hold no personal guarantees, the answer may be as simple as walk away.
Of course, most taxes are collectible by “responsible parties” so debts to the IRS and State are quite often going to follow you. For restaurant owners, Liquor commission obligations are almost always personal obligations as well. Finally, most who have bought or leased cars through their company will find that they personally guaranteed that debt even though invoices got mailed in the company name.
Therefore, the first step in deciding how to get out is to hire an insolvency specialist to advise you on what will follow you out the door. Moreover, with the new provisions of Subchapter V of Chapter 11, you may find that a lost cause is actually a manageable reorganization.
If you didn’t use a lawyer to help you make good choices when you got into business, it is crucial that you use one to get out.
This article is written by an attorney at Attorney Donald Wyatt PC. Always consult an attorney before making any legal decisions. To make an appointment today, please click here to contact us.