What are the differences between personal and corporate bankruptcy?

What are the differences between personal and corporate bankruptcy?

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Min Austria
Assistant at Ascent Law LLC

Personal bankruptcy is a form of debt relief for individuals. But if you have a business, you may have to file a separate bankruptcy to get the same type of relief. Unlike personal bankruptcy, where you have to pass a means test, corporate bankruptcy does not.

One of the major differences between personal and corporate bankruptcy is the effect on the business. A sole proprietor can file for personal bankruptcy, while an incorporated business cannot. The individual who files for bankruptcy gets a discharge of the debt, which normally includes the corporation's debts. As a result, a business owner can face criminal sanctions if he intentionally fails to buy back assets.

There are a few exceptions. Some debts are not dischargeable in bankruptcy. These include home mortgages, alimony, child support, and certain taxes. Other non-dischargeable debts include benefit overpayments, fraud, and death-related debts. If you're filing for personal bankruptcy, make sure to file it in a timely fashion.

Personal bankruptcy is the most popular form of bankruptcy. It's not the same as corporate bankruptcy, but it's similar. Personal bankruptcy allows individuals to stop legal action from unsecured creditors. In addition, it prevents wages from being garnished.

If you have any questions or in need a Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.

Ascent Law LLC

8833 S Redwood Road Suite C

West Jordan UT 84088

(801) 676-5506

Utah Lawyer for Divorce Business Bankruptcy Probate Estates
Ascent Law helps you in divorce, bankruptcy, probate, business or criminal cases in Utah, call 801-676-5506 for a free consultation today. We want to help you.
https://www.ascentlawfirm.com

Location: Santa Clara, UT, USA

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