Introduction
Chapter 7 bankruptcy can also apply to small businesses. It allows business owners to shut down
operations, sell business property, and apply the money to unpaid debts, helping them move
forward without personal liability for some business obligations.

Who Qualifies

• Businesses with little or no cash flow.

• Owners who want to close the business efficiently.

How the Process Works

• File a petition and list all business assets and debts.

• A trustee sells business assets to pay creditors.

• Remaining debts are not discharged, but the business will be closed.

 

Benefits

• Provides a clear end point for struggling businesses.

• Helps owners start fresh.

• Stops debt collector calls and legal actions.

Next Steps
Our team can guide business owners through the Chapter 7 process and help protect personal

assets where possible.