Avoid Filing for Business Bankruptcy
If you are business owner on the brink of filing bankruptcy, take a moment to re-evaluate your decision. To assist you in this process, our team of experienced business debt lawyers highlight a few important points as to why you should avoid filing business bankruptcy at all costs:
Acquiring a Bad Reputation: Many small businesses prefer to avoid filing business bankruptcy due to the bad reputation that follows. Although there are larger corporations that have successfully restructured their debt, smaller companies should explore alternative routes. Small business owners who obtained funding from the SBA will not be eligible to obtain another SBA loan if it is discharged.
Profitability Guarantee: Businesses that enter into in a Chapter 11 bankruptcy are required to demonstrated to the Court that they will generate profits after the restructuring process. For small businesses, this may be difficult to envision.
Limited control over business operations: Although the business may still control the daily operation of the businesses, there are some activities that will require Court approval.
Loss of privacy: Financial information provided to the Court eventually become public record and available to anyone who wishes view them.
Legal Fees: Chapter 11 is a complex and expensive process. If it not well executed and planned, you may end up in deeper financial trouble.
If you are a business owner struggling to stay afloat and would prefer to avoid filing bankruptcy, our debt relief lawyers can help you. Schedule your free consultation with one of our lawyers if you have been faced with a business lawsuit, defaulted on your business loan or simply cannot afford to pay back your creditors.