There are no guarantees in business, and financial health certainly is one of the common problems that companies run into. If you are having a tough time paying off your debts or meeting your financial obligations as a company, then you need to consult with an attorney to make sure that all of your questions are answered.
If you want to go the route of business bankruptcy, please think through these important factors:
- Do you want the business to operate after the bankruptcy? It is a fair question, because some businesses use a bankruptcy filing to sell off any remaining assets of the company or to shut down the company. Depending on how you answer that question, it will affect what type of bankruptcy filing you pursue.
- How will you meet your financial obligations in the wake of a bankruptcy? You will want to have plans in place to ensure that you can fulfill your financial responsibilities after going through a bankruptcy.
- Do you really want to go to court with your company in bankruptcy? This is an important question, because when you go to court your company is exposed and open to serious critiques.
- Can you handle the restrictions that will be put in place if you file for business bankruptcy. If you do not think your company can handle them, then you need to proceed carefully with your next actions. Talk to your attorney about this.
Source: FindLaw, “Ten Things to Think About Before Filing for Bankruptcy,” Accessed March 15, 2017