When it comes to bankruptcy, your debt can be divided into two different categories. Some debt is dischargeable, meaning that it can be eliminated in your bankruptcy. While there is a specific list of debts that are included on the "dischargeable" list, you will find that it includes most, if not all, of their debts. Dischargeable debts include personal loans, credit card debt, medical bills, leases, and most income tax debts over three years old. A smaller list of debts is considered non-dischargeable, which means that they cannot be eliminated in bankruptcy. Non-dischargeable debts include student loans, alimony, child support, income tax debts less than three years old, and criminal fines. So, where does small business debt fall? If you are filing Missouri or Illinois Chapter 7 bankruptcy to stop harassing creditor calls, get credit card debt help, or stop a wage garnishment, your debt must be primarily consumer debt. If you are, indeed eligible as a debtor, a chapter 7 bankruptcy will discharge your personal obligation to pay the small business debt. Now, does that mean that your debt has disappeared forever? Not necessarily. Creditors may still take action to collect the debt from your actual business if your business is structured a specific way. Filing a chapter 7, however, does protect your personal interest in the debt; and since most lenders require small business owners to make a personal guarantee on any loan, this could be a great move to get yourself out from under your crushing debt. The best move would be to contact a St. Louis Missouri or Belleville Illinois bankruptcy attorney who is experienced in handling small business debt in a bankruptcy case. Since a small business can cause some complications, having an attorney who understands how important your business is to you is mandatory. You may even be able to keep your small business with a Chapter 13 bankruptcy. The roots of the American economy all lie in small business. Following your dreams to open a small business is not always an easy process. But, luckily, there are Missouri and Illinois bankruptcy lawyers who can help you keep your dream alive while also helping you handle the debt you?ve incurred in the process. How do you know when you've found the best bankruptcy attorney in your area? Most attorneys offer a free consultation but the best attorneys will offer you free information before you even step foot in an office. Look for an attorney who offers you free articles, blogs, and even free publications to help you understand how bankruptcy can help you.
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