Is Your Business Sinking Financially And You Think Your Debt Is Overwhelming? Call A Bankruptcy Law Service Today
If you have stretched your business too thin and you know that you are in debt over your head and you must stop operating, it's time to get some bankruptcy advice. Regardless if it was a change in the economy, bad financial management, or other factors that have contributed to the financial strife in your business, there are different options for bankruptcy that may work for you.
You need to gather all the financial information you have regarding your business and find a bankruptcy attorney that does business cases. Here are a few of the things you need to do to do prep for the case.
Be Transparent with Financial Information
You want to be transparent with all the financial information you have. Print out an provide access to these financial details:
- Past 3–5 years tax returns
- Debt accounts like loans, leases, or credit cards
- Profit statements
- Company bank accounts
- Monthly expenses and payroll details
The lawyer will see what you are paying out each month, what is coming in, when your business got in trouble, and what your ability would be to pay the money you back.
Be Open to All Bankruptcy Options
You want to be open to all bankruptcy options if you are trying to keep your business open. If you think it's best to sell off the assets and pay what you can and shut the doors of the business for good, you need to talk with the lawyer about Chapter 7 bankruptcy.
With Chapter 7 you will be forgiven by the courts if you are awarded the bankruptcy, and this will be on your record for years into the future and affect your credit. When a lawyer sees an opportunity for you to reorganize your business, change things, and potentially keep going, Chapter 13 is a better option.
The Chapter 13 bankruptcy will allow you to work with your attorney and the courts to settle debts at lower amounts, have more time to pay debts, and do other things to get out of debt and to keep your business running.
Until a legal professional goes through your information and dissects your finances, you won't know what is possible or what is the best option for you. Find an attorney that can help you sooner rather than later, especially if you want to try to keep your business open and not take any more major financial losses.
Contact a local bankruptcy law service for more information.