Is your business facing financial trouble? Is your business struggling to meet its financial obligations? Do you know the steps you need to take to resolve the issue? The first thing that comes to mind when a business is having financial hardships is to file for bankruptcy. But, there are business bankruptcy options available that will allow you to avoid declaring bankruptcy, prevent liquidation and stay open so your creditors can be paid.
In fact, there are some options for business owners that can prevent them from filing bankruptcy.
Debt Counseling Agencies
Debt counseling agencies are often seen as a last choice when bankruptcy is not viable. However, you should seek these business bankruptcy options services first. There are agencies that only work with businesses so you can be sure that they understand how important it is to you that your business survives and thrives.
Most often the consultants will offer you a free evaluation. During this evaluation, the consultant will look over the current financial situation of your business. The consultant will also let you know the bare minimum at which your company can survive. This information is essential and will let you know if bankruptcy is indeed in your company’s future. The debt counselor will provide you with an objective view of your company’s finances.
Hiring a Consultant
If you choose to hire a debt counselor to help you get your business back on track, be aware that the counselor may assume the same role as a court appointed trustee. The only difference is that going through the court process will leave a negative mark on your credit rating, while having a debt consultant liquidate assets will not affect your rating adversely. However, before you make any final decisions, you should also consult with a bankruptcy attorney.
Filing for Bankruptcy
When the decision has been made to file for bankruptcy, the process is long and complex. Bankruptcy courts now require business owners to pre filing credit counseling and financial management after the bankruptcy discharge. If filing for Chapter 11 or Chapter 13, the attorney will also have to submit a prepared payment plan that has been approved by the court to your creditors.
There is no magical solution when faced with business bankruptcy options. However, business owners should attempt to come up with a solution that will keep the creditors who helped the business along the way stay happy. Business owners should also stay updated to any changes in bankruptcy filings and options. This knowledge is beneficial when the economic climate is unstable.
Do you want to know more about business bankruptcy options or if bankruptcy is the best solution for your business? Contact us for a free consultation.