No business owner wants to admit that bankruptcy is the best way to resolve unmanageable debt, but for many, that decision ultimately must be made. That creates another decision: what bankruptcy is best for your small business?
Running your own small business is challenging even when business is good. When your company starts to lose money, running a small business can seem next to impossible. Depending on your business entity, you may also have personal assets tied to the livelihood of your business. Even if your personal property is not liable for business debts, you still have a lot invested in your company.
As a small business owner who has insurmountable debt, you are considering the drastic step of filing bankruptcy. You have done some research online, and Chapter 7 seems the best fit for your particular circumstances. Of course, you have many questions. The biggest is this: Will you be able to keep your business after you declare Chapter 7 bankruptcy?
Think of Chapter 13 bankruptcy as a business mulligan. Some tremendously successful figures in U.S. history have declared bankruptcy, including our current president and the president widely considered to be among the best ever. Abraham Lincoln had to repay creditors over a period of 17 years after a general store he co-owned failed.
It appears that a fair number of banks are making it easier for companies to get loans these days. This is what a recent survey by the Federal Reserve suggests.
As an employer, it is your duty to make sure that each of your employees receive fair pay and treatment while ensuring that your company continues to make profits. Unfortunately, many companies in California fail to adhere to these standards and attempt to boost their earnings by forcing their workers to work off the clock without overtime pay.
I just finished helping a Southern California business wind down its affairs and resolve matters with its creditors without a bankruptcy filing. The creditors did far better than they would have in a bankruptcy. We created a soft landing for the business, its owners and its creditors. Did so using a technique I created and have used multiple times with great success. If your business is having financial challenges, hiring an experienced and creative debt restructing lawyer can make all the difference in the world and save you many sleepless nights.