Mario T. LangoneAttorney at Law
Small business ownersChapter 7 for small business owners
When a business struggles or closes, the debts often land on the owner. If you’re facing business debts you’re personally on the hook for, a personal Chapter 7 may give you a fresh start.
Who I help
I file primarily for business owners, not for the business itself. That usually means:
Sole proprietors
If you ran the business in your own name, you and the business are legally the same. A personal Chapter 7 can address both your business and personal debts together.
Owners with business debt on their shoulders
If you signed personal guarantees, co-signed business loans, or put business expenses on personal cards, those debts may be yours personally — and they can be addressed in your own Chapter 7.
Own an LLC or corporation? In most cases I refer a Chapter 7 filing for the company itself to another attorney, but I’m glad to talk it through with you first. Call (559) 233-1111 for a free consultation about your situation and your options as an owner.
Is this you?
- Your shop, restaurant, contracting, trucking or service business has closed or is about to
- Vendors, landlords or lenders are calling or suing you personally
- You signed a personal guarantee on a lease, credit line or equipment loan
- Business debt has spilled onto your personal credit cards
Business debt and the means test
If most of your debt comes from a business rather than personal or household spending, you may not have to pass the Chapter 7 means test at all — even if your current income is above the California median. This is one of the reasons it’s worth getting advice before you decide.
What a personal Chapter 7 can do for an owner
- Stop lawsuits, levies and collection calls against you through the automatic stay
- Address personal guarantees and business debt on your personal cards
- Protect your home, vehicle and tools of your trade up to California’s exemption limits
- Let you move on to your next job or venture with a fresh start
The process
Free consultation
Meet with Mario one-on-one, in person at his office or by phone or video. Talk through your debts, income and goals, and get a straight answer on whether Chapter 7 makes sense.
Gather your paperwork
We’ll give you a simple checklist: pay stubs, tax returns, bank statements and a list of what you owe and own. You also take a short credit-counseling course.
We file your case
Mario prepares and files your petition with the bankruptcy court. The “automatic stay” takes effect, which generally stops most collection activity right away.
Meeting of creditors
About a month after filing, you attend a short “341 meeting” with the trustee, currently held by video. Mario prepares you and is with you the whole time.
Your fresh start
After a short financial-management course, the court issues your discharge — often about three to four months after filing.
Your business closed. Your life doesn’t have to stall.
Talk with Mario about your options in a free, no-obligation consultation.