There are many times when people wonder if bankruptcy will be the right choice for them. Choosing bankruptcy could help you get out of debt, restructure your business or set up repayment plans that work for what you owe. However, a bankruptcy can also be harmful to your credit.

Some people believe that selling assets and trying to liquidate assets prior to bankruptcy may be a better choice, as it would prevent them from going bankrupt and still protect their credit.

So, which is better? Should you sell your assets or turn to bankruptcy when times get tough?

The right path for you will depend on several different factors. For example, if you’re in debt by around $1,000,000 and have $1,500,000 in assets, then it may make sense to sell off nonessential assets to pay back what you owe and get your books back in the black instead of the red. On the other hand, if you only have $300,000 of assets and owe over $1,000,000, then liquidating your assets may not be helpful to you. In those cases, bankruptcy would be better, because you’d be able to protect the assets you have while also setting up a plan for repaying what you owe.

Operating a business can be tough, especially when the economy declines or goes into a recession. If you want to make changes to your business or need to rearrange your debts, then bankruptcy could be helpful to you. Your attorney will have more information about bankruptcy and why it could be the right choice for you under these circumstances. Our website also has information about bankruptcy and the different kinds that could be suitable for you based on your financial situation.