Running a business can be stressful and difficult. Even those businesses that begin with a well crafted business plan, adequate funding, brilliant marketing and a much needed product or service, may still find themselves eventually facing financial ruin. Perhaps the business went through a dry spell that required the owner take out a few additional loans, and ultimately overextend credit to avoid closing the doors. A slow economy could have left the business struggling to try and keep up with monthly expenses and bills, with customers or clients failing to pay on time, making matters worse. A change in the industry may have forced the owner to make costly changes and adjust his or her marketing plan, or new ways to reach out to customers.
No matter what the reason is for a business downturn, if you face have an overwhelming amount of debt and you have exhausted all of your existing resources, you may want to consider filing for bankruptcy. Bankruptcy can prove to be highly beneficial to businesses struggling with large amounts of debt. Bankruptcy is a legal means through which a business can reorganize its debt and create an affordable payment plan that would allow its doors to remain open. In certain circumstances, and with certain types of businesses, filing for bankruptcy could eliminate some existing business debt, allowing the company to restructure its operations and continue. Bankruptcy will put an end to aggressive collection efforts, including lawsuits.
That action alone can provide much needed relief to a business and allow its owners and executives to refocus their attention on making the business profitable. In cases where a business owner may wish to close the doors of his or her business due to overwhelming debt, a lack of income and an overall inability to remain profitable, bankruptcy may also prove to be a viable option. Keep in mind there are numerous factors which must be considered when filing for bankruptcy. Do the assets and overall value of your business outweigh the liabilities? Was your business profitable prior to it falling on hard times or facing temporary financial troubles? Can you be held personally liable for any of the debts associated with your business?
Each of these factors must be taken into consideration when determining what type of bankruptcy may be the correct form to file. If you are considering a business bankruptcy, the first thing you need to do is contact a knowledgeable bankruptcy attorney. A Michigan bankruptcy attorney at Hensel Law Office, PLLC will be able to examine the current financial status of your business, assess the situation and advise you on how to proceed. They will provide you with the legal guidance to help you achieve your ultimate objectives. Contact the firm to schedule a free consultation at once.