You’ve been running your business for years, but over time, you’ve seen fewer profits. You wish that it was easy to resolve the issue, but you can’t seem to figure out what’s going wrong.
You’ve come to a point where you think you’re going to have to close, but you owe so much in debt that you’re not sure if you can without creditors coming after you for the money you don’t have. What should you do?
One option is to pursue bankruptcy for your business. A business bankruptcy will allow you to stay open or close your doors, depending on the kind you choose. For example, Chapter 7 bankruptcy liquidates your assets, but Chapter 11 allows you to restructure your business. The one you want to choose depends on many factors, such as:
- The amount of debt you have
- Whether you’d like to remain open or intend to close
- If you have employees you want to keep on the job
- If you could rearrange your finances or contracts to become profitable again
If you go through your finances with an accountant or bankruptcy attorney and find that you cannot become profitable even with the use of bankruptcy, then you may want to liquidate your assets and work to have your remaining debts dismissed. If you think that you can stay open and save your business through negotiations and creative accounting strategies, then a Chapter 11 bankruptcy may be a better choice.
Your business is special to you, and what you want matters. Your attorney will work closely with you to help you with whatever kind of bankruptcy you choose for your business.