Being an entrepreneur can be quite rewarding, but it can also bring with it many hardships. Many businesses go through ups and downs with their finances. Unfortunately, some small business owners find it difficult to bounce back and end up with a mountain of debt and no way to pay it off. If this sounds like what you have experienced, you may have considered filing for bankruptcy. While this may seem like a relative straightforward procedure, many business owners who try to file on their own without the help of Business Bankruptcy Attorneys often find out that this is not the case. If you have decided that bankruptcy is the path that you would like to take for your business, here are a few situations in which it is a good idea to consult legal counsel before filing a petition:
1. Sole proprietors who have chosen not to incorporate their businesses definitely need to consult an attorney when it comes to filing a bankruptcy petition for their businesses. Because they do not have the same legal protection as an LLC or other types of corporations, their personal finances could be in jeopardy if the business goes under. A good lawyer will be able to explain your options and help you keep your personal finances intact.
2. Those business owners who are unsure about which type of petition they need to file should take the time to ask a lawyer before they proceed with their bankruptcy plans. Depending on the financial state of your business, one type of bankruptcy may be a better option than the others. For example, those businesses who have less debt may benefit from Chapter 11 bankruptcy, which allows you to reorganize your business and create a payment plan for your creditors. However, businesses that are not able to produce the necessary cash flow may find that Chapter 7 liquidation is what they need.
Filing for bankruptcy is often a touch decision for anyone, and it becomes even more difficult when there are business assets involved. Business Bankruptcy Attorneys have a thorough understanding of how the bankruptcy process works and can help entrepreneurs move through it as smoothly as possible. If you’re struggling to get your finances in order, consulting legal counsel about business bankruptcy could be just the thing you need to help you get back on track so that you can finally lift your burden of debt. Visit website for more information.