Despite its increased use and benefits, there are still misconceptions about bankruptcy. This is perhaps most damaging when it comes to filing for bankruptcy as a small business. Owners may fear it will damage their credit, or that they will ultimately face closure if they file. Hence, they continue to trudge through debt, possibly putting the future of their company at risk. If you are a small business owner in serious debt and considering bankruptcy, the following can help you understand the misconceptions about bankruptcy and assist you in deciding if it might be the right option for your company.
Understanding the Purpose of Small Business Bankruptcy
If you are considering bankruptcy for your small business, you are probably having a difficult time meeting your financial obligations each month. In fact, your company may already be bankrupt. At the very least, it is heading in that direction. To ignore this is not only poor decision making, it could potentially lead to personal financial issues and the closure of your business. Bankruptcy may help you avoid such issues. In fact, some companies manage to negotiate the terms of their debts, consolidate, and pay off their creditors while keeping their businesses open and running. When used in this way, bankruptcy could be more of a benefit and less of a hindrance to your company’s future.
Is Bankruptcy the Right Option for Your Small Business?
Bankruptcy is not the right option for every small business. However, companies that are viable and have a future, as well as companies that may go under even after they file, may both benefit from a bankruptcy filing. If nothing else, this legal action may protect the personal assets of business owners and/or partners. Still, it is encouraged that you have your situation analyzed by an experienced lawyer before making any final decisions. After all, each situation is unique and should be treated as such.
Contact Our Tinley Park Small Business Bankruptcy Lawyers
Regardless of what your situation is, or how complex the issues you are facing may seem, the Law Offices of Eric G. Zelazny can help. Dedicated and experienced, we will carefully analyze your case and inform you of your options. We will protect your best interests, every step of the way. Learn more about how our Tinley Park small business bankruptcy attorney can assist with your case. Call 708-888-2299 and schedule a free consultation today.