If your small business is drowning in debt, you are definitely not alone. The drastic downturn of the economy that began in 2008 took many small business owners by surprise. For various reasons, such as reduced consumer spending, stronger competition, and shrinking or even disappearing lines of credit, the number of people filing for business bankruptcy has increased.
You might be thinking of filing for business bankruptcy for one or more of the following reasons:
- Your debt has gotten so out of hand that you cannot see the day when you will be able to pay it off.
- You would like the harassing calls from the collection agency to go away.
- There are pending law suits or you may have lost a law suit and face the possibility of paying a judgment that is beyond your means.
- You want to stop the vehicle you use for your business from being repossessed.
- You want to get out of an expensive commercial lease, sales contract, or equipment or vehicle lease that is keeping you from making a profit.
- Your spouse’s wages are being garnished or there is a notice of a foreclosure sale on your house.
- You are under a mountain of business debt and need to get out from under it so you can pay your mortgage and feed your family.
- You wish to remove a lien from your underwater home.
- You are personally liable for the business debts because your business is either a sole proprietorship or a general partnership.
If any of the above describe your condition, then you are a candidate for a business bankruptcy under Chapter 7 or Chapter 13. The decision will depend on your personal circumstances. Whether you can keep your business afloat during your business bankruptcy again will depend on your circumstances. If you have valuable business assets, you are likely to lose them in a Chapter 7 bankruptcy. It is therefore important that a business owner meet with an experienced bankruptcy attorney before filing for business bankruptcy.
If you are at a place where your finances have reached the breaking point, remember that you are not alone. The current financial crisis that has taken hold of this country is affecting thousands of businesses, both large and small.
The bankruptcy system is built on the understanding that financial missteps or simple bad luck happens to us every now and then. It provides relief to those who recognize that there is a problem and endeavor to do something about it.
Filing for business bankruptcy under the Bankruptcy Code can be the path to future financial success for many small business owners.
If you are ready to get on the path back to financial stability for your business and your personal life, give us a call at Dowe Law (510-233-7700). Here you will meet with a competent attorney who will guide you through this stressful time and put a smile back on your face.