{"id":4388,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-debt-and-bankruptcy.html"},"modified":"2026-04-01T15:07:00","modified_gmt":"2026-04-01T20:07:00","slug":"business-debt-and-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy.html","title":{"rendered":"Business Debt and Bankruptcy Law"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><div\n    data-testid=\"fl-general-title\"\n    class=\"fl-general-title fl-flex fl-gap20 fl-items-end\"\n>\n    <div class=\"fl-general-title-heading fl-flex fl-flex-column\">\n        <h1\n            class=\"fl-h1 fl-general-title-title fl-no-spacing\"\n            data-testid=\"fl-general-title-title\"\n        >\n            Business Debt and Bankruptcy Law\n        <\/h1>\n        <p\n            class=\"fl-general-title-description fl-text-xl fl-no-margin\"\n            data-testid=\"fl-general-title-description\"\n        >\n            Most businesses will incur some form of debt as a necessary part of operations, whether it&#8217;s the use of credit cards or bank loans. \n        <\/p>\n    <\/div>\n<\/div>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last updated\n        <time>\n                            April 01, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<p>Most businesses will incur some form of debt as a necessary part of operations, whether it&#8217;s the use of <span data-term-id=\"28382363\">credit cards<\/span> or bank loans. However, problems arise when the debt load is unsustainable and out of balance with revenues, sometimes leading to bankruptcy. This section contains information and resources to help a financially troubled business, with business debts, collections, and bankruptcy.<\/p>\n\n\n\n<div\n    class=\"fl-category-overview\"\n    data-testid=\"fl-category-overview\"\n>\n    <div\n        class=\"fl-accordion fl-category-overview-container\"\n        id=\"category-overview\"\n        data-testid=\"fl-accordion\"\n    >\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-1-category-overview\"\n               aria-labelledby=\"button-1-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-1-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-1-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Dealing with Business Debt\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-1-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/help-for-your-business-during-financial-trouble.html\" class=\"fl-list-item-link\">\n                                    <span>Help for Your Business During Financial Trouble<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/options-when-you-can-t-pay-your-business-debts.html\" class=\"fl-list-item-link\">\n                                    <span>Options When You Can&#039;t Pay Your Business Debts<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/small-business-debt-collection.html\" class=\"fl-list-item-link\">\n                                    <span>Legal Ways for Small Businesses to Collect Debts<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/glossary-bad-debt-accounting-terms.html\" class=\"fl-list-item-link\">\n                                    <span>Glossary: Bad Debt Accounting Terms<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-2-category-overview\"\n               aria-labelledby=\"button-2-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-2-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-2-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Business Bankruptcy Law\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-2-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/ten-things-to-think-about-before-filing-for-bankruptcy.html\" class=\"fl-list-item-link\">\n                                    <span>Ten Things to Think About Before Filing for Bankruptcy<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/what-to-expect-filing-bankruptcy.html\" class=\"fl-list-item-link\">\n                                    <span>What to Expect: Filing Bankruptcy<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/hiring-an-attorney-for-an-adversary-bankruptcy-proceeding.html\" class=\"fl-list-item-link\">\n                                    <span>Hiring an Attorney for an Adversary Bankruptcy Proceeding<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/glossary-bankruptcy-terms.html\" target=\"_blank\" class=\"fl-list-item-link\">\n                                    <span>Glossary: Bankruptcy Terms<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>Good Debt vs. Bad Debt<\/h2>\n<p>Most people are not exactly thrilled about owing people money. But there is a distinction among different kinds of debt, as some debts are held in a much better esteem than others. More to the point, &#8220;good debt&#8221; refers to debt on assets that earn your business more income than the cost of that debt. The cost of any debt is the interest charged. In contrast, &#8220;bad debt&#8221; &#8212; such as emergency loans meant to keep a business afloat during hard times &#8212; doesn&#8217;t contribute to the company&#8217;s growth and may hurt the company&#8217;s overall value.<\/p>\n<p>You may have to incur some bad debt from time to time, but the key is to pay it off as quickly (and painlessly) as possible.<\/p>\n<h2>Prioritizing Debts: Which to Pay Off First<\/h2>\n<p>Deciding which debts to pay down first can be overwhelming when your company&#8217;s revenue is less than your debt obligations and monthly payments. Since you can&#8217;t satisfy all debts at the same time, it&#8217;s best to prioritize these obligations in a strategic way. For instance, certain debts must be paid in full &#8212; taxes, for instance &#8212; while other debts can be paid down gradually or even negotiated.<\/p>\n<p>Your unique situation and business needs will dictate how you repay your debts, but the following debts generally should take priority (this is not a comprehensive list):<\/p>\n<ul>\n<li>\n<p><strong><em>Payroll and payroll taxes<\/em><\/strong> &#8211; While it may be tempting to use money withheld from employee paychecks to plug financial holes, it could lead to problems come tax time; also, you likely will face steep penalties if you fail to pay your workers on time or in full. Individuals responsible for withholding taxes may be personally liable for the unpaid taxes.<\/p>\n<\/li>\n<li>\n<p><strong><em>Utilities and communications<\/em><\/strong> &#8211; Resources and services such as electricity, water, telephones, and Internet are absolutely critical to most businesses; and if you fall behind, you may lose these vital services.<\/p>\n<\/li>\n<li>\n<p><strong><em>Loans with <span data-term-id=\"28382383\">personal liability<\/span><\/em><\/strong> &#8211; Partners and <span data-term-id=\"28382360\">sole proprietors<\/span> are personally liable for <span data-term-id=\"28382356\">business debts<\/span>, although officers of corporations and LLCs also may be liable for debts they personally guaranteed.<\/p>\n<\/li>\n<li>\n<p><strong><em>Court Judgments<\/em><\/strong> &#8211; Creditors that have won court judgments against you or your business may legally seize property or even garnish wages.<\/p>\n<\/li>\n<li>\n<p><strong><em>Secured Loans<\/em> <\/strong>&#8211; Many <span data-term-id=\"28382358\">small business<\/span><span data-term-id=\"28382358\"> owners<\/span> put up personal property, including their private home, as collateral for a loan; a default could lead to losing one&#8217;s home, or home office.<\/p>\n<\/li>\n<\/ul>\n<h2><span data-term-id=\"28382353\">Small Business<\/span><span data-term-id=\"28382353\"> Bankruptcy<\/span><\/h2>\n<p>If you&#8217;re unable to secure additional funding or otherwise find yourself without options to revive your struggling business, bankruptcy may be the next option. During the <span data-term-id=\"28382392\">bankruptcy process<\/span>, the business is granted an \u201c<span data-term-id=\"28382390\">automatic stay<\/span>\u201d where creditors cannot collect.<\/p>\n<p>Businesses that have a shot at a turnaround typically file for <span data-term-id=\"28382352\">Chapter 11 bankruptcy<\/span> protection. This allows businesses to have certain debts forgiven while they <span data-term-id=\"28382351\">reorganize<\/span>, with limited protections for the suppliers and vendors as well. But generally, the <span data-term-id=\"28382373\">type of bankruptcy<\/span> available to your business depends on your legal structure, amount (and type) of debts, plans for the future, and your <span data-term-id=\"28382383\">personal liability<\/span> for these debts.<\/p>\n<h2><span data-term-id=\"28382371\">Bankruptcy Options<\/span> for <span data-term-id=\"28382350\">Small Businesses<\/span><\/h2>\n<h3><span data-term-id=\"28382354\">Chapter 7 Bankruptcy<\/span> &#8211; <span data-term-id=\"28382359\">Liquidation<\/span><\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/who-can-file-for-chapter-7-bankruptcy.html\">Chapter 7<\/a> is the simplest <span data-term-id=\"28382373\">type of bankruptcy<\/span> available for businesses that can\u2019t continue operating. The <span data-term-id=\"28382362\">bankruptcy court<\/span> appoints a trustee to sell or \u201cliquidate\u201d <span data-term-id=\"28382377\">business assets<\/span> and pay off creditors. After the <span data-term-id=\"28382381\">bankruptcy case<\/span> ends, any individual <span data-term-id=\"28382366\">unsecured debt<\/span> (such as <span data-term-id=\"28382363\">credit cards<\/span>, or supplier invoices, or rent payments) is wiped out. The business does not receive a discharge but ceases to operate. The owner is only responsible for any <span data-term-id=\"28382380\">personal guarantees<\/span> of debt.<\/p>\n<p><strong><em>Example:<\/em> <\/strong>A small shoe store can\u2019t afford to keep operating, pay rent and suppliers. The owner files for Chapter 7 to close down. A trustee sells the inventory, equipment, and any other assets to clear the <span data-term-id=\"28382356\">business debts<\/span>. After that, the company dissolves.<\/p>\n<h3><span data-term-id=\"28382352\">Chapter 11 Bankruptcy<\/span> &#8211; <span data-term-id=\"28382351\">Reorganization<\/span><\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/business-bankruptcy\/chapter-11-bankruptcy.html\">Chapter 11<\/a> helps a business <span data-term-id=\"28382357\">restructure<\/span> instead of dissolve. The company is in control as a \u201cdebtor in possession\u201d and continues to operate while creating a <span data-term-id=\"28382364\">repayment plan<\/span> for their creditors. Creditors can vote on the <span data-term-id=\"28382394\">reorganization<\/span><span data-term-id=\"28382394\"> plan<\/span> and the <span data-term-id=\"28382362\">bankruptcy court<\/span> must approve it. <span data-term-id=\"28382402\">Unsecured creditors<\/span> have a lower priority and are only paid after priority and secured claims.<\/p>\n<p>The <span data-term-id=\"28382395\">Small Business<\/span> <span data-term-id=\"28382395\">Reorganization<\/span><span data-term-id=\"28382395\"> Act<\/span> of 2019 created <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/business-bankruptcy\/subchapter-5-in-chapter-11-bankruptcy.html\"><span data-term-id=\"28382372\">Subchapter V<\/span> of <span data-term-id=\"28382352\">Chapter 11 bankruptcy<\/span> <\/a>as a way to <span data-term-id=\"28382401\">streamline<\/span> the process for <span data-term-id=\"28382358\">small business<\/span><span data-term-id=\"28382358\"> owners<\/span> with <span data-term-id=\"28382398\">outstanding debts<\/span> below a certain threshold.<\/p>\n<p><strong><em>Example:<\/em><\/strong> A fast-food chain might use <span data-term-id=\"28382352\">Chapter 11 bankruptcy<\/span> protection to <span data-term-id=\"28382351\">reorganize<\/span> debt and close unprofitable stores while continuing to serve customers.<\/p>\n<h3><span data-term-id=\"28382355\">Chapter 13 Bankruptcy<\/span> &#8211; Repayment<\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-13\/chapter-13-bankruptcy-law-checklist.html\">Chapter 13<\/a> is only available for individuals or <span data-term-id=\"28382360\">sole proprietors<\/span>, not <span data-term-id=\"28382379\">business entities<\/span> such as corporations or <span data-term-id=\"28382361\">partnerships<\/span>. Chapter 13 allows business owners to keep their business and repay debts over three to five years. A <span data-term-id=\"28382378\">bankruptcy trustee<\/span> oversees this process but the owner keeps control of the property. <span data-term-id=\"28382366\">Unsecured debts<\/span> may only get a fraction of repayment as secured and priority debts get paid first.<\/p>\n<p><strong><em>Example:<\/em><\/strong> A self-employed contractor could file Chapter 13 to catch up on debts while continuing to run their business.<\/p>\n<p>It is best to get <span data-term-id=\"28382393\">legal advice<\/span> from a <span data-term-id=\"28382374\">bankruptcy lawyer<\/span> to evaluate your options to help your <span data-term-id=\"28382408\">struggling <\/span><span data-term-id=\"28382350\">small business<\/span> a <span data-term-id=\"28382384\">fresh start<\/span>. A <span data-term-id=\"28382365\">bankruptcy attorney<\/span> can also walk you through the <span data-term-id=\"28382382\">bankruptcy code<\/span> and initiate the <span data-term-id=\"28382367\">bankruptcy filing<\/span>.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\" fl-section-sidebar  \"><div class=\"generalCard\">\n            <div class=\"disclaimer--newLegalZoom general-card--newLegalZoom__disclaimer fl-text-sm\">\n            <p>FindLaw will earn a commission if you purchase business formation products through these affiliate links.<\/p>\n        <\/div>\n        <div class=\"general-card general-card--newLegalZoom\">\n        <div class=\"general-card__header\">\n            <div class=\"general-card__header-image-container\">\n                <img decoding=\"async\" loading=\"lazy\" class=\"general-card__header-image--newLegalZoomText\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom_text.png\"\n                     alt=\"\">\n                <img decoding=\"async\" loading=\"lazy\" class=\"general-card__header-image--newLegalZoom\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom.png\"\n                     alt=\"\">\n            <\/div>\n            <span class=\"general-card__header-title fl-text\"><p>Meet FindLaw&#8217;s <b>trusted partner LegalZoom<\/b>, an industry leader in online business formations<\/p>\n<\/span>\n        <\/div>\n        <div class=\"general-card__body\">\n            <div class=\"text section\">\n                <div class=\"cmp-text\">\n                    <h2 class=\"general-card__h2--newLegalZoom fl-h3-landing\">Kickstart your LLC in minutes!<\/h2>\n                    <div>\n                        <p><p>Join the millions who launched their businesses with LegalZoom.<\/p>\n<p><b>LLC plans start at $0 + state fees.<\/b><\/p><\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n        <div class=\"general-card__footer\">\n            <a class=\"general-card__footer-link fl-text-lg diy-biz-affiliate\" data-cta-url=\"legalzoom.com\" data-cta=\"Biz LZ - LATL ESum\" target=\"_blank\" rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=business-debt-and-bankruptcy-overview-esum\">\n                <p class=\"general-card__footer-link-text fl-no-margin fl-text-lg-medium\">Get started<\/p>\n                <i class=\"general-card__footer-link-icon fa fa-angle-right\" aria-hidden=\"true\"><\/i>\n            <\/a>\n        <\/div>\n    <\/div>\n    <div class=\"general-card--newLegalZoom__bottom\">\n        <p>Prefer to work with a lawyer?<\/p>\n<p><a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=latl_biz:dir:lz_esum\" target=\"_blank\" rel=\"noopener\">Find one right now.<\/a><\/p>\n\n    <\/div>\n<\/div>\n\n    <div class=\"popularDirectory\">\n        <div class=\"general-popular-directory \">\n            <div class=\"general-popular-directory-title\">\n                <h3>Attorney Directory<\/h3>\n            <\/div>\n            <ul>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/bankruptcy-law\/\" target=\"_blank\" rel=\"noopener\">Bankruptcy Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/foreclosure-alternatives\/\" target=\"_blank\" rel=\"noopener\">Foreclosure and Alternatives Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/collections\/\" target=\"_blank\" rel=\"noopener\">Collections Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/credit-repair\/\" target=\"_blank\" rel=\"noopener\">Credit Repair Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/debtor-creditor\/\" target=\"_blank\" rel=\"noopener\">Debtor and Creditor Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/\" target=\"_blank\" rel=\"noopener\">Real Estate Law Attorneys<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/divorce\/\" target=\"_blank\" rel=\"noopener\">Divorce Lawyers<\/a><\/li>\n                            <\/ul>\n        <\/div>\n    <\/div>\n<\/div>\n<\/div>\n\n\n<div class=\"popularRecent\">\n    <div class=\"row popular-recent\">\n        <h2 class=\"popular-recent-title\">Looking for More Information?<\/h2>\n        <div class=\"popular-recent-item\">\n            <div class=\"popular-recent-item-image\">\n                <img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/images\/w_1200,c_limit,dpr_auto\/f_auto,q_auto:eco\/v1745849290\/ability-law\/wp-prod\/general-components-popular-recent-popular\/general-components-popular-recent-popular.svg?_i=AA\"\n                    alt=\"\">\n            <\/div>\n            <div class=\"popular-recent-item-content\">\n                <h3>Popular Law Articles<\/h3>\n                <ul class=\"fl-list\">\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/small-business-debt-collection.html\">Small Business Debt Collection<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/what-to-expect-filing-bankruptcy.html\">What to Expect: Filing Bankruptcy<\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/\"> Business Debt and Bankruptcy Law<\/a>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n        <\/div>\n        <div class=\"popular-recent-item\">\n            <div class=\"popular-recent-item-image\">\n                <img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/images\/w_1200,c_limit,dpr_auto\/f_auto,q_auto:eco\/v1745849421\/ability-law\/wp-prod\/general-components-popular-recent-recent_12960fdca\/general-components-popular-recent-recent_12960fdca.svg?_i=AA\"\n                    alt=\"\">\n            <\/div>\n            <div class=\"popular-recent-item-content\">\n                <h3>Most Recent Law Articles<\/h3>\n                <ul class=\"fl-list\">\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/options-when-you-can-t-pay-your-business-debts.html\">\n                                Options When You Can&#8217;t Pay Your Business Debts\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/glossary-bad-debt-accounting-terms.html\">\n                                Glossary: Bad Debt Accounting Terms\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/glossary-bankruptcy-terms.html\">\n                                Glossary: Bankruptcy Terms\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/ten-things-to-think-about-before-filing-for-bankruptcy.html\">\n                                Ten Things to Think About Before Filing for Bankruptcy\n                            <\/a>\n                        <\/li>\n                                            <li class=\"fl-list-item fl-flex\">\n                            <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                            <a class=\"fl-list-item-link\" href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/small-business-debt-collection.html\">\n                                Legal Ways for Small Businesses to Collect Debts\n                            <\/a>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>FindLaw explains business debt and bankruptcy, from prioritizing payroll to filing Chapter 7 or 11. Can a reorganization save your company? Learn your options now..<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":4328,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/OverviewPageController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2],"tags":[9],"state_laws_tags":[],"flmsa":[],"class_list":["post-4388","page","type-page","status-publish","hentry","category-smallbusiness","tag-aff-llc"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=4388"}],"version-history":[{"count":3,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4388\/revisions"}],"predecessor-version":[{"id":394805,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4388\/revisions\/394805"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4328"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=4388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=4388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=4388"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=4388"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=4388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}