Business Bankruptcy Benefits

Falling into debt as a small business owner is, unfortunately, all to common in today’s economy. Despite the best efforts, many business owners find themselves heavily indebted to multiple creditors. Options like debt counseling, negotiating with creditors, or liquidating portions of the business should all be attempted as alternatives. When each of these options has been exhausted then, and only then, should bankruptcy be considered as an option.

Business PlanIn certain cases bankruptcy can provide some relief, not only financially but personally as well. Dealing with creditors and the constant anticipation of losing your livelihood can begin to take its toll over time. In working with a bankruptcy attorney, several items must be established before deciding if filing for business bankruptcy is not only the right choice, but if it’s even possible. Factors like the type and amount of debt, whether or not the business will stay open, and personal liability all serve to dictate whether bankruptcy is possible.

Once it has been established that bankruptcy is the next and most logical step and all of the necessary paperwork has been filed the business can expect to benefit from a number of advantages:

  1. Maintenance of the business – In some cases the business is afforded the opportunity to keep its doors open and continue business as usual.
  2. Less contact with creditors – In most cases once bankruptcy has been filed, creditors and collection agencies are no longer allowed to contact the business owner.
  3. Debt forgiveness – Depending on the type of bankruptcy being filed, most debts are forgiven in order to give the business the opportunity to rebuild within an agreed upon timeframe.
  4. Starting over – In some cases business owners are able to take out loans again within just a few years of the initial order.

There are obvious disadvantages to business bankruptcy This is why it is important to fully research the topic and work with an experienced attorney to weigh every option and decide if bankruptcy or liquidation are the right choice.

For information on liquidation services offered by Ideal Trading, please visit our website here. Or to contact us please fill out the Quick Contact Form to the left hand side of your screen.