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Understanding When Bankruptcy Is the Right Move

Filing for bankruptcy doesn't necessarily mean the end of your business. In fact, depending on what your financial situation is, bankruptcy can be the step that saves your business because it lets you reorganize your debts and clear the slates a bit for a more stable future. Before you jump into bankruptcy as the endeavor to right your business ship, though, it's critical to do your homework and understand not only whether bankruptcy is right for you, but also which type of filing best fits your needs.

Our firm works with businesses on matters that range from litigation to bankruptcy. We can help you understand what your legal options are so you can make the best-informed decision before moving forward. For example: Would your financial situation be better served by a personal bankruptcy or business bankruptcy? For some small business owners, it can be difficult to figure out the line between personal and business finances, and we can help you understand which filing would provide you the most relief and let you move forward.

In some cases, your business has simply experienced a large but temporary setback. It could have come from economic pressure, a poor business decision or a problem with litigation that resulted in financial loss. In such circumstances, a debt reorganization through either Chapter 13 or Chapter 11 might be the right step for you. While bankruptcy is never easy and it can create some obstacles for business growth, if it's handled correctly, it doesn't have to kill your business.

Our firm can help you navigate bankruptcy waters without drowning. We have experience with the system on behalf of both individuals and businesses.

The author's opinions expressed in this article are strictly his/her own and should not be attributed to any others, including other attorneys at Klein DeNatale Goldner or the law firm as a whole.

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