Most people view bankruptcy as a last resort whether it is on a personal level or a business level. They do not look at it as being a beneficial way to assist their business. They view it as a way of perhaps satisfying their debts so that they are not held responsible and can close the doors. However, there is a chance that bankruptcy could help you continue your business.
It begins by taking a close look at whether the business is worth continuing and whether you have the enthusiasm to continue with it. If it turns out that your business is losing money consistently and there doesn’t seem to be any hope of turning this around, then it may be time to close the doors. However, if you are going through a bad segment of your business and the future looks bright, you may want to keep it going. In either case, a bankruptcy attorney can help steer you in the right direction.
The other thing you need to consider is whether the assets that the business has are worth more than what it owes. If there are a lot of assets in the company then it may be well worth saving, however if this is reverse then this may not be an option.
You also have to consider your personal liabilities. If you are going to continue your business you will have to decide which chapter of bankruptcy you are going to go for. You can still use a Chapter 7 bankruptcy which may allow you to wipe out both personal and business debts if you are a sole proprietorship. It is also going to depend on whether you have a lot of non-exempt assets that may be sold during a Chapter 7 bankruptcy. If this is the case this may not be the best option for you. You also may have the opportunity to use a Chapter 13 bankruptcy which is more of a re-organizing of your financial accounts.
Speaking to a qualified bankruptcy attorney will help you decide the best option for you and what you will qualify for, and whether you should use bankruptcy to continue your business.