When you’re a small business owner, facing financial issues may be a struggle you’re all too familiar with. The best way to battle your way out of debt is to face the creditors head on, tighten your purse strings and make the necessary payments. For many, however, this isn’t really a viable option to repay creditors, because sometimes you just simply don’t have the money. Don’t make the mistake of waiting too long to seek advice from a small business bankruptcy lawyer when facing financial hardship – it might just save your business.
The idea of filing for bankruptcy is quite scary for anyone, especially a small business owner, and is often thought of as a last resort. However, a bankruptcy filing might be the extra kick your small business needs to survive and eventually, thrive! Take a look at these signs that may indicate it’s time to seek advice from a small business bankruptcy lawyer.
Is Your Business Making Money?
The first, and probably most important, question you should ask yourself when considering bankruptcy is whether or not your business is profitable. If your business is continuously losing money, it might be in your best interest to close up shop. On the other hand, if your business has been traditionally profitable and is just hitting temporary hard times (due to the economy or other temporary factor), you should sit tight and ride out the financial storm.
A big mistake many entrepreneurs tend to make is refusing to face the reality of their financial situation and whether remaining open is really the best option. An optimistic bunch, entrepreneurs facing financial trouble tend to pour funds into a venture long after hope for recovery is lost.
Are the Assets Worth More Than the Liabilities?
So, your business is still making money, great! If your business has more assets than liabilities, that’s another indication that the company might be worth saving. Having the ability to reorganize your debt through bankruptcy (or get rid of it completely if you’re the sole proprietor) could mean the difference in the life of your business.
Say, for example, the answers that bankruptcy offers aren’t feasible. You’ll then have the option to close the business by liquidating any assets and paying off the debt that way, without having to file bankruptcy.
Consult with a Small Business Bankruptcy Lawyer Before Making Any Big Decisions
When considering bankruptcy filing, there are hundreds of minute factors to analyze against your unique business, and whether bankruptcy is truly the best option for your situation. If you’ve tried everything you can think of to repay creditors, don’t hesitate to enlist the help and advice of a small business bankruptcy lawyer like CMC Law.
Our lawyers are bankruptcy pros and are specially trained to analyze your small business’ unique needs beyond the surface-level financial concerns. The success of their cases hinges on how well they get to know a business and its people, so they can artfully craft the bankruptcy strategy that will benefit all parties involved.
If you’re a small business owner considering bankruptcy, call us at 404-585-0040 or schedule a consultation online to speak with an attorney and get your business back on track.