During times of financial crisis, much like we have seen during the COVID-19 pandemic, business begins to drop off and no longer operate. With lack of customers, shoppers, and buyers, businesses are no longer able to make ends meet and are being forced to shut down. As a result, we are starting to see a record number of bankruptcies for small businesses.
Even if you are doing everything you can to make your business survive, sometimes it just is not enough. That is when it might be time to consider consulting with a lawyer about your financial situation and consider filing bankruptcy for your business.
Here are 6 reasons why filing bankruptcy might be right for your business:
- Bankruptcy can stop creditors.
- Bankruptcy can liquidate assets.
- Bankruptcy can help you structure a payment plan with the IRS and other entities.
- Bankruptcy can stop foreclosures.
- Bankruptcy can reorganize and relieve small-large debts to operate.
- Bankruptcy can stop garnishments on your accounts receivables.
- Bankruptcy can relieve you from leases on property you no longer need.
If you find yourself feeling like these are all things you could use help with, then bankruptcy might be the right route for you. The only way to know for sure is to find an attorney that fits your needs and discuss your options with them. You have worked hard to create your business and run it. Do not lose hope before going through all your options. An experienced bankruptcy attorney like myself, who has filed over a thousand bankruptcies for individuals and businesses, will be able to help advocate your needs to get you back on your feet.
Disclaimer: Each business and/or individual situation is different and unique. This article is intended to provide you with general advice only and not to be construed as legal advice. If you would like a detailed approach to your particular situation, please contact David J. Winterton & Associates for a consultation to discuss your options.