Can Filing for Bankruptcy Save My Business?

Did you always have a dream of running your own business and having a lot of success? It is something you likely wanted to pursue for a long time. If you have since taken the plunge and started your own business, things may have been quite a struggle for you over the past several months or years. Have you found yourself dealing with a lot of debt because of all the investments you need to make when you first started the business? Getting a startup off the ground takes time and requires a lot of funding, most of which you may have had to borrow from banks and other lending institutions that provided you with a line of credit.

If the debt is overwhelming and you are struggling to make ends meet because you are not earning enough to cover living expenses, business expenses, and the cost of all the debt you currently owe to various creditors, you might feel like you are going to need to close your business down for good. Why shut the doors on something you love and about which you are passionate? It is one thing to close a business that has failed and in which you are no longer interested. However, if your business is starting to have more success and you believe that things are only going to get better from this point forward, filing for bankruptcy could potentially help you save your business.

Why is Bankruptcy Worth Considering?

Bankruptcy is worth considering when you constantly feel like you are drowning in all the debt you currently owe to different creditors. It may be hard for you to run your business in the way that you want to because you are getting calls from your creditors each day, too. If you constantly get calls from people who are expecting you to pay what you owe when you simply do not have enough money to make that happen, you are going to feel stressed and worried, and that is going to mess with your productivity rates. It will take time away from your focus on the business and that is never good for a new business.

If you file for bankruptcy, you could work on getting out of debt without necessarily needing to shut your business down. You started the business for a reason – you were passionate about what you were going to offer to the public and you knew that what you could offer would benefit other people, especially your targeted demographics. After putting your all into the business, you should not have to give up on it that easily simply because you have a lot of debt that has become nearly impossible for you to manage. When you file for bankruptcy, you can put a stop to the harassment that you are receiving from your creditors while finding a way to get out of your rut. It is an option that you should talk over with your business partners and a bankruptcy attorney who has helped other business owners that have been in the same type of situation you are in now.

How can Bankruptcy Help Save My Business?

Bankruptcy can save your business because you will have protection from your creditors as soon as you start the filing process. Having some protection from your creditors is quite important. Once you start owing them a lot of money, they could make an attempt to get you to liquidate the business that you have started. Rather than doing things the way that your creditors would want you to, it is possible for you to still have control over the situation by filing for bankruptcy with an attorney and choosing the right method of filing that will help you save your business in the long run while taking care of the debt.

Of course, you will still owe money to your creditors. However, the bankruptcy process can put a stop to their harassing phone call, and it can keep those creditors from taking what you are making or what you have at this very moment.

The only time you should file a Chapter 7 bankruptcy is when you have plans to close your business for good. You could sell everything you have inside the establishment, such as cooking equipment, inventory, and even pieces of artwork that you might have on the walls of your business. The money from the sale of all items liquidated would get distributed to your creditors to help with the process of paying off the debt you owe. However, this is not a suitable option for any business owner that would like to keep the business running while still effectively handling the debt.

Instead of filing Chapter 7, you should talk to a bankruptcy attorney about filing Chapter 13 or Chapter 11 to start handling the debt without getting rid of your business and everything you have put your all into over the past several years. When filing Chapter 13, your bankruptcy attorney can negotiate with your creditors to get debt payments lowered while consolidating those payments to make them more reasonable for you. It may be much easier for you to afford to pay your debt off little by little when the amount owed is broken down into much smaller monthly payments that you can afford because you are still earning income from your business.

When you believe that things are only going to get better for your business and you have high expectations to begin earning a significant amount of money in the future, you might even want to file Chapter 11. The process involves a bit more paperwork, but your bankruptcy attorney could help you complete everything that is requested of you, including a turnaround plan that you are going to put in motion to ensure the success of the business. The plan must be approved in the courtroom and the creditors will get to review it before you get the approval. If it sounds like something that will benefit you and the business you have started, it is surely worth doing.

How Does the Process of Filing for Bankruptcy Begin?

If you want to start the bankruptcy filing process because you are tired of feeling overwhelmed by all the debt that you currently have, you would need to contact a bankruptcy attorney and attend a meeting where you can consult with an attorney about your situation. You would need to go over details about the amount of money you owe to creditors, the number of creditors you currently have, and the amount of money you are bringing in from your business. It helps to bring financial records with you to the consultation to give the attorney more detailed information on your current financial situation.

After talking with the attorney, you can learn about the different ways to file for bankruptcy and choose the option that you feel will best meet your needs over time. When you want to keep your business, Chapter 13 and Chapter 11 are the two best options to consider.

Hire a Bankruptcy Attorney Today

Struggling to stay afloat with your business because of all the debt you owe and not sure how to manage it all? Put a stop to the stress by contacting a bankruptcy attorney and getting the process started to get out of debt without closing the doors of your business. At Bouloukos Oglesby & Mitchell, we have the experience to help business owners with the bankruptcy process. Contact us today at 205-351-0800 for a free consultation.