Running a business can be very challenging, and sometimes market conditions can put a company in a position where cash flow and revenues make it very difficult to stay in the black. If your company is having serious financial issues, and your debt exceeds income, you may want to consider filing for bankruptcy.
Deciding whether or not to file for commercial bankruptcy can be a very difficult choice, and you should think through your options before doing anything hastily. In some cases, filing for commercial bankruptcy may be the best option on the table for your business. If you are seriously considering filing for commercial bankruptcy, take the following steps.
Assess Your Company's Debts
Before you file for commercial bankruptcy, it is very important to have a clear picture of your business finances. Take the time to gather all necessary financial documents, and look at the revenue has been earned over the past several months.
After calculating business review, figure out exactly how much debt your company is currently liable for. If the amount of debt you hold greatly exceeds revenue, you may not have any other option than to file for bankruptcy.
Hire a Commercial Bankruptcy Attorney
Filing for commercial bankruptcy can be a very complicated and complex process. As a business owner, it is never in your best interest to try to proceed with commercial bankruptcy on your own. Even if you're still on the fence about whether or not to file for commercial bankruptcy, you should always consult a commercial bankruptcy attorney.
An attorney will analyze your company's financial information and offer advice. In the event you decide that commercial bankruptcy is the best course of action, your attorney will assist in making sure that each step of the process goes as smoothly as possible.
Understand Your Commercial Bankruptcy Options
As a business owner, you will have two bankruptcy options. In the event that your company's debts are too large to overcome, you will need to file chapter 7 bankruptcy. In this type of bankruptcy, you will liquidate your company's assets to pay off as much of your debts as possible. After the liquidation is completed, the business will close.
If your company's financials show that your company could survive with a little bit of help, you can file for chapter 11 bankruptcy. This type of bankruptcy involves reorganization and allows a company to legally renegotiate debts with debtors or set up manageable repayment plans. For more information, contact an office that deals with commercial bankruptcy such as Molleur Law Office.