Every business has a story to tell, and too many of them have to be overcome by the countless challenges and uncertainties that business owners face every day. So knowing how to handle a failed business is just as important as knowing how to manage successful business growth.
Many small businesses are not incorporated, so the entrepreneur and sole proprietor of these businesses are eligible to file certain bankruptcy chapters that larger organizations do not have. Oftentimes, business owners sign on as personal guarantors for their commercial and personal debt, so they are eligible to file personal bankruptcy options.
If you are personally responsible for business debts, you may still be in bondage even after your business obligations are settled in business bankruptcy. You may need to release your personal responsibility for debt by filing for personal bankruptcy or by negotiating a settlement with a creditor. If not, creditors can still come to you to pay off their debt in full even after the business has closed and its liability for the debt has expired. Personal liability for business debts can be a complex legal arena and should be discussed in detail with your attorney.
Filing for bankruptcy can be an excellent strategy for dealing with a failed business venture to restructure finances, innovate solutions, and chart new paths to prosperity.
The most important thing an Entrepreneur should realize is that closing a business is not bad, and it is not bad to file bankruptcy to protect yourself. Entrepreneurs take risks, so of course, sometimes it doesn’t work outright. That’s why there are bankruptcy laws. Just like starting a business, ending a business requires careful planning.
When thinking about which bankruptcy option is best for your business, you need an experienced bankruptcy attorney to review all of your circumstances and options before making a recommendation.
Get in touch with the bankruptcy tulsa ok attorney team or schedule a free confidential consultation to find out for sure.
Companies that follow bankruptcy rules receive waivers – court orders that say they don’t have to pay certain debts.
However, bankruptcy will affect your ability to do business, borrow money, etc. However, bankruptcy is a legal procedure that offers a fresh start to businesses that are experiencing financial difficulties and are unable to meet their debts.
A business owner is more than a person who opens a shop, restaurant, or service shop like a pet shop. They are doctors or dentists, starting their own practice, software engineers trying to build the latest apps, lawyers starting their own practice. In every situation, people get loans to get capital to build their business and to keep it going. Entrepreneurs then have a vision, that the business will grow and develop. Even when they lose money, things turn around – they believe in their business. Lawsuits can derail a business, sales can slow down, or costs can skyrocket.
If you face uncompromising amounts of business and/or personal debt, contact an experienced bankruptcy attorney to review your situation in detail, define a strategy, and take action.