If you run a business and have found it difficult to maintain it with limited incoming profits, it may be time to look at your options. If you’re falling behind on bills or cannot afford to pay your employees, then you could be in a position where a bankruptcy is right around the corner.
There are several signs that Chapter 7 bankruptcy might be right for your business. Here are three to consider as you decide on the next steps to take.
- You can’t afford your rent
One of the major signs that it’s time to consider bankruptcy is if you look at your business’s budget and can no longer support the rent or mortgage for your building. Whether that is a result of prices increasing locally or you have struggled because of dark economic times, you need to take a look at your budget and be honest. If there is no way to cut back on expenditures and to afford the necessities, bankruptcy may be the best option.
- You have to delay your workers’ pay
If you run into a problem where you’re having to delay your workers’ pay or you don’t know if you can pay at all, then bankruptcy could be a solution. At a minimum, the bankruptcy could help you cut down on your expenses and work out a new plan for moving forward, which is what happens with a Chapter 11 bankruptcy. If that isn’t possible, then Chapter 7 bankruptcy may help you liquidate assets to repay at least a portion of what you owe.
- You don’t want to keep your business open anymore
If you no longer want to keep your doors open and can’t see a way to turn around your finances, then Chapter 7 bankruptcy may be right for you. This will help you liquidate your assets and repay debts, so you can walk away without having to repay all of your losses.
These are three reasons why you may want to consider Chapter 7 bankruptcy. If you’re struggling, don’t wait to look into the options open to you.