The Bankruptcy Guide For Small Business Owners In Las Vegas, Nevada

There is no better example of the American dream than setting out with an idea to start one’s own business. But even the most innovative businesses struggle, which is evidenced by countless major companies declaring bankruptcy since the pandemic. Whether you’ve run your own business for years or started in your line of work recently, there are a number of pressures making it harder than ever to be a small business owner. If you have struggled with rising costs and declining customers with your Las Vegas small business, you aren’t alone. The economy has been tough for small business owners throughout our state and the rest of the country. If your creditors have you backed against a corner, you can take back control by declaring bankruptcy. Put a hard stop to collections with the automatic stay and clear liabilities so you can move forward with a clean slate. Schedule your free consultation with our firm to learn more today at 702-842-0700.

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The Small Business Bankruptcy Act for Las Vegas Locals

Not every business owner declaring bankruptcy wants to go down the route of chapter 7 bankruptcy, which requires liquidation. The other option for a business owner struggling with debt is chapter 11 bankruptcy. This form of bankruptcy is popular among business owners who believe in giving their companies (at least) one more shot. But it is a far more complex and costly form of bankruptcy than chapter 7. A major factor contributing to this is the creditor committee in chapter 11 bankruptcy. A standard filing requires that the debtor’s top creditors join to form this committee, and vote on issues affecting the bankruptcy case’s resolution. This can cause the debtor and committee to go back and forth for months if the debtor didn’t enter the bankruptcy with a pre-packaged deal with their creditors.

Lawmakers could recognize how chapter 11 bankruptcy procedures were prohibitive to small business owners, and thus passed the Small Business Reorganization Act, or SBRA, in 2019.