Small Business Bankruptcy in Minnesota

If you are faced with the prospect of shutting down a Minnesota business you may need to consider a personal bankruptcy. The main things we see when talking to a potential client about a small business bankruptcy is the amount of personal guarantees that the business owner has signed. If you have a small business that is not doing well and you have not signed a personal guarantee you may not need to file for personal bankruptcy. In many cases clients think they can simply file a business bankruptcy and then walk away from the personal guarantees. This is not the case, when you sign the personal guarantee the creditor can pursue you for payments on the debt, even after the business closes.
In some cases you may want to work on a loan workout with your creditors. This involves negotiating a payoff of your debts normally for a reduced amount. The problem with this approach is that it can lead to a 1099 form, that means you will have to pay some taxes on the forgiven debt. The advantage of this approach is it may allow your business to continue operating and turn around.
We have helped many small business owners get back on their feet throughout the Minneapolis-St. Paul area. If you have further questions you can contact us at 952-294-0144 or find more information online at www.bolinskelaw.com.