Some of the biggest names in the global business industry have suffered due to the ongoing economic crisis. Unfortunately, no company is entirely safe and far too many small to medium business owners are finding themselves with a very negative financial outlook. This is part of the reason the number of business bankruptcy filings has grown so rapidly this side of the decade and you need to understand that you are not alone. There are many businesses faced with this tough decision and, more importantly, there is help out there for anyone who is willing to accept it.
The business usually has to hire an attorney who will help them through the bankruptcy process. Preferably, the business will have to file the process under Chapter 11.
How do I choose the right Chapter for my case?
Your attorney will inform you about the process. Chapter 11 is the most popular code used by businesses to change their resources so that they can pay off their financial obligations. For larger companies and businesses, Chapter11 is probably the best way to declare bankruptcy. It is also referred to as corporate bankruptcy and helps companies to continue running while they restore their cost-effective financial obligations repayment plans.
Seeking Help When You Need It
There are ways to deal with your current financial situation that will not cause the weight of it to crush you. For instance, there are solutions that you may not have explored. On top of all this, if bankruptcy really is your only option there are ways to make the procedure a lot less tedious than it is when going it alone. Remember
1. It is likely that small/non corporate business debt could be seen as a personal liability so you need to understand what to expect.
2. Filing for business bankruptcy may affect your personal credit depending on
a) Your type of company
b) The amounts and types of taxes owed
c) How the debts were guaranteed
3. The results of your proceedings could affect your ability to borrow as a business in the future.
4. You have choices when filing (Chapter 7, 11 and 13), but each depends on eligibility and have strict rules to follow.
5. Most solutions will have optimal times to take advantage of so you should start seeking assistance now.
6. The longer you do nothing the bigger the problem is likely to get.
Make a Decision to Get Help Now
The position you are currently in is no doubt scary so why go it alone? Get help from people who know what you are going through, have experience in finding the best solution for you and are passionate about helping business owners like you break free.