Going bankrupt is not a lot of fun for anyone, personally or if you need to declare a business bankruptcy.
Before you get so far into the red with your business, you might want to think ahead and have some contingency plans in place if you face tough times down the road. The economy today is not in super condition and we are actually facing a rather serious recession.
In a recession many things happen, not the least of which is people stop buying items they view as “extras.” There isn’t much in the way of discretional funds to spend on things that people once didn’t think twice about buying. Keep that in mind if you are in business during a recession and your product or service is something people deem “nice but not really needed right now.” You may face an uphill battle to stay in business, so having an alternative plan if struggling with a serious decline in revenue only makes good sense.
If you are considering declaring bankruptcy, then the first thing you need to think about is whether you want to continue to operate your business or not, and whether it is viable to do so. Depending on your business’s situation, different kinds of bankruptcy can help you to liquidate the business or reorganize it and continue to run it.
What you really need to know is what your goals are for the future of your business, as there are several routes open to you to declare bankruptcy. This is where your bankruptcy attorney will outline the various options from which you may choose.
The route of bankruptcy you choose will largely also relate to the type of business you own, e.g. partnership, a corporation or sole proprietor. Don’t waste a moment trying to sort out what to do, as this is precisely what you hire a bankruptcy attorney for in the first place. They are there to help you through the process and will outline what you need to know to make an informed decision that is best for you in the prevailing circumstances.
Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.