You started your company with enthusiasm and excitement, sure that you could make it work. Though you and your employees worked hard, things just didn’t click. Maybe the reason was out of your hands, like an economic recession or changes in competition. Regardless, you now know that you’re going to have to do something drastic, and that may mean declaring bankruptcy.
You have always assumed that bankruptcy was a way to get rid of some of your debt while closing your business. Does this have to be the end of your start-up and the end of your dream?
It can, but it certainly does not have to. It likely just depends on the type of bankruptcy you use. For instance, with Chapter 7 bankruptcy, you liquidate assets. You may have to close the business to do it.
If you use Chapter 11, though, you can restructure your business’s finances and make it viable again. The goal is just to make changes to the financial picture and set you up for sustained success — not to force you to sell off all of the company’s assets. This can mean there will be changes in the way that you spend money and the way the business is run, but it does not mean you have to shut your doors. Don’t be afraid of looking in to bankruptcy because you think you’ll lose everything you’ve built.
There are solutions that can help when facing financial challenges. You need to know about your bankruptcy options to determine what is best for you and your company. An experienced attorney can help you.