A recent survey from Brigham Young University found that many small businesses are unaware of how bankruptcy may help save their business. A group of researchers from Brigham Young University, Harvard, University of Chicago and the University of Toronto teamed up to survey small business owners’ perceptions of bankruptcy. In short, they found that:
- 30% of small business owners stated they were uncertain the business would survive the year
- 34% of small business owners reported “a good understanding of the bankruptcy system”
- 65% of small business owners agree that it would be embarrassing to file for bankruptcy
- 60% agree that friends and family may judge their bankruptcy filing or they would be stigmatized
- 54% reported filing for bankruptcy may negatively impact the opinions of their customer base
Business bankruptcy is one tool available to help businesses struggling with debt and reduced profits. When a business files for bankruptcy, it can be an opportunity to restructure debts and operating costs, allowing a business to continue. Businesses may be able to eliminate or significantly reduce the amount of debt they owe, or be protected from being sued for the unpaid debts. Businesses may also be able to stop a foreclosure or repossession of equipment. Talk to a Dallas bankruptcy attorney about your options for your business.