The Bureau of Labor data implies that post five years of their respective inceptions, 50% of small businesses are forced to shut down due to bankruptcy. A study found that in 2021, there were commercial bankruptcy filings made by 6,289 businesses in the United States of America. While filing for commercial bankruptcy is expensive, there are ways to protect the company’s finances through the help of an attorney. However, when exactly should a business consult with an attorney? If the following predicaments are relatable, then we suggest the law offices of Scott J. Goldstein– an absolute goldmine of excellent attorneys.
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Unable to Pay Off Debts
If your company is consistently unable to pay off loans and other forms of debt, then that is a sign of bankruptcy. This is when you should start looking for bankruptcy attorneys so that your company can be saved.
Liquidation
Chapter 7 type of bankruptcy is when a company’s assets need to be liquidated to pay off debts. If you find yourself in this conundrum, then you have to file with the help of an attorney, making the process easier.
Reorganization
If you think there’s a chance that your company can be saved even after filing for bankruptcy, then chapter 11 is the ideal option for you. An attorney will be of benefit throughout the process, prioritizing your company’s best interest.
Uncooperative Creditors
Creditors can often be uncooperative, even recalcitrant. An experienced bankruptcy attorney, in this case, will be the most qualified person to negotiate with them on your behalf and will hopefully set up a deal that works best for your company.
Sole Proprietorship
A sole proprietor with a high income can file for chapter 13, which is a complex process. A bankruptcy attorney is imperative in this case, as chapter 13 allows for the protection of your company’s assets, which the attorney will ensure.
There are several ways with which bankruptcy can be resolved. Owing to the fact that each of these options is complex and tedious, a bankruptcy attorney can do most of the work for you. Keep in mind that if your personal assets are used as collateral for your debts, then you, as the business owner, can be personally affected by commercial bankruptcy. An attorney will also protect your personal assets and finances while helping you through the procedure of filing for bankruptcy in court, so it is ideal to hire one if you find that your business is in trouble.