Oklahoma Business Bankruptcy Due To Covid-19 are mounting at an alarming rate. Just seven (7) months ago the economic picture in Oklahoma was incredible. Businesses were thriving and unemployment numbers were low. Now businesses are facing a pandemic of global proportions. A majority of the country is under stay at home orders and businesses have been ordered closed to the public. COVID-19’s disruption of normal business practice has adversely affected small businesses’ sustainability. In these unpredictable times, struggling small businesses may be looking to the protections offered by filing a business bankruptcy.
Businesses Can File Bankruptcy
If you own a business in Oklahoma that business can file for bankruptcy. Businesses file bankruptcy in federal court. Business bankruptcies are typically described as either business closure or reorganization. Depending on which type of bankruptcy is filed, it will help businesses eliminate or repay the debts under the guidance and protection of the Federal court. The legal structure of individual businesses must be examined to determine which type of bankruptcy is best.
Sole Proprietorship Bankruptcy
In Tulsa business bankruptcy due To Covid-19 apply to sole proprietorship businesses too. A sole proprietorship is when an individual does business without forming a legal organization. For example, John Doe dba Doe’s Service. In this situation the sole proprietorship and its owner are legally the same entity. Therefore the sole proprietorship cannot file a bankruptcy case apart from the proprietor. Meaning Doe’s Service cannot file bankruptcy separate from John Doe. In this circumstance, John Doe dba Doe’s Service as a sole proprietorship may choose to file a Chapter 7 or Chapter 13 bankruptcy. Under a Chapter 7 or liquidation bankruptcy, John Doe would have to pass the Means Test. On the other hand, John Doe dba Doe’s Service could file a Chapter 13 reorganization bankruptcy which would allow the proprietorship to stay in business and repay its debts.
Other Businesses and Oklahoma Bankruptcy
When a legal organization is formed things are different. Partnerships, Limited Liability Companies and Corporations are treated as separate and distinct entities from their owners. This means that the organizations themselves can file for bankruptcy protection under Chapter 7 or Chapter 11. A Chapter 7 bankruptcy may be the best choice if the business has little to no assets and no viable future. Under Chapter 7 the organization will be liquidated and no longer do business. Chapter 11, another type of reorganization bankruptcy, is used by corporate entities that desire to continue operating a business and repay creditors through a court-approved plan.
Business Bankruptcy Attorneys Near You
Business bankruptcy due To Covid-19 are increasing at a startling pace. If you own a business and the virus has drove it into the ground bankruptcy may be a solution for you. Its not your fault that our economy was crushed by the global pandemic. Its not your fault that what was once a promising business is now shattered. If there’s a silver lining bankruptcy is it. You can get out from under the mountains of debt that’s the result of the carnivorous. Contact one of our Oklahoma bankruptcy attorneys and get the help you need. We file both personal and business bankruptcy in Oklahoma. And, we file both chapter 7 and chapter 13 cases. Free consultation at 918.743.2233