Business bankruptcy is no joke. It can be one of the scariest things any business owner has to deal with in their lifetime. If you are struggling with bankruptcy right now, it can seem like a huge task that is impossible to tackle. However, the reality and good news is that you can beat it. But you need the right tools and tactics to avoid common pitfalls and take advantage of loopholes. Therefore, take the following advice into account as soon as possible if your business is facing bankruptcy right now:
You Have Options: Understand the Kind of Bankruptcy You Are Facing
There are many different kinds of business bankruptcy. One size does not fit all. You need to know which on you are going to file for based on your rights and your current situation. For instance, Chapter 7 bankruptcy is when the business owner is in so much debt that you can’t possibly pay it all. It’s a way of liquidating your company and paying creditors. However, partnerships and corporations will not receive a discharge at the end of this process, only the business owner. The owner is then relieved of all debts.
The second is a Chapter 11 bankruptcy. In this case, you are going to agree to pay your creditors back over a longer period of time such as 20 years. The creditors must vote and approve this method, but it allows you to simply restructure the company and maintain ownership.
There is also personal bankruptcy that you can choose if you are a sole proprietor. Keep in mind the risks of this route. Your assets may not be insulated by a company structure.
Getting Professional Legal Help
There is nothing wrong with getting lawyers involved as early as possible with your bankruptcy problems. In fact, the sooner you do the sooner you can avoid mistakes and create a strategy to reduce your debts and get the results you’re looking for. Use law firms with track records like Roberson Law LLC and others so you can have confidence in your hire.
Be honest with your lawyers and work with them to get the appropriate documents in place.
When it come to bankruptcy, it is never an easy task. However, if you take the right steps you can come out on top. Seek to understand your situation, needs, options, and intended outcome. Then hire the best you can afford to navigate you out of it with persistence and expertise.