Bankruptcy Lawyer In Creve Coeur: Bankruptcy Options for Small Business Owners: Chapter 7 vs. Chapter 11

Bankruptcy lawyer in Creve Coeur

Bankruptcy Options for Small Business Owners: Chapter 7 vs. Chapter 11

If you’re a small business owner in Creve Coeur facing financial difficulties, you may find yourself at a crossroads where bankruptcy becomes a consideration. Bankruptcy can offer a fresh start for your business, but it’s crucial to understand the available options. At Charles Huber Law, a trusted bankruptcy lawyer in Creve Coeur, we’re here to guide you through this challenging process and help you make the right choice for your unique situation.

Small business owners typically have two main bankruptcy options: Chapter 7 and Chapter 11. Each has its advantages and disadvantages, and the decision between them should be based on your specific circumstances.

Chapter 7 Bankruptcy for Small Businesses

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is often the preferred choice for small business owners who wish to close their businesses and discharge their debts. Here’s how it works:


  1. Quick Discharge: Chapter 7 typically offers a quicker resolution, allowing you to eliminate most of your business debts within a few months.
  2. Fresh Start: It provides a fresh start by discharging unsecured debts like credit card debt, medical bills, and certain business loans.
  3. No Repayment Plan: Unlike Chapter 11, there’s no need to create a repayment plan. The bankruptcy trustee sells your non-exempt assets to repay creditors.


  1. Business Closure: Chapter 7 leads to the closure of your business. If you want to continue operating, this may not be the right choice.
  2. Asset Liquidation: Your non-exempt assets may be sold to repay creditors, potentially including business assets.

Chapter 11 Bankruptcy for Small Businesses

Chapter 11 bankruptcy is a reorganization bankruptcy that allows businesses to continue operating while reworking their debts. This option is often chosen by businesses looking to stay afloat and restructure their financial obligations:


  1. Business Continuity: You can continue operating your business and generating income during the bankruptcy process.
  2. Debt Restructuring: Chapter 11 allows for the negotiation and restructuring of debts, including renegotiating loan terms and reducing interest rates.
  3. Asset Protection: You have more control over the fate of your assets and can keep them while working out a repayment plan.


  1. Complex Process: Chapter 11 is more complex and costly than Chapter 7, with more paperwork and ongoing obligations.
  2. Court Oversight: Your business will be under the supervision of the bankruptcy court, and you’ll need court approval for major decisions.
  3. Repayment Plan: You’ll need to propose and gain approval for a repayment plan, which may involve repaying a portion of your debts over time.

Choosing the Right Bankruptcy option

The decision between Chapter 7 and Chapter 11 depends on your business goals and financial situation. If your business is no longer viable and you want a quick resolution, Chapter 7 may be the way to go. However, if you believe your business can recover with a little financial breathing room and a chance to reorganize, Chapter 11 could be the better option.

bankruptcy Lawyer In Creve Coeur

At Charles Huber Law in St. Ann, we understand that every small business owner’s situation is unique. Our experienced bankruptcy lawyers can assess your financial circumstances, discuss your goals, and help you make an informed decision about whether Chapter 7 or Chapter 11 is the right choice for you.

Contact us

If you’re a small business owner facing financial challenges, contact Charles Huber Law in St. Ann for expert guidance on your bankruptcy options. Our experienced bankruptcy lawyer is here to help you make the right choice for your unique situation. Schedule a confidential consultation today to start your journey toward financial recovery.