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Will bankruptcy end your business?

On Behalf of | Oct 1, 2022 | Bankruptcy

If your business is in serious financial difficulties, you might consider bankruptcy. Yet, if you still believe in your company, the thought of killing it may be too much to bear.

While filing for bankruptcy could be the end of your business, it does not have to be. You only have to look around to see how many struggling companies used bankruptcy as an opportunity to reset and go on to succeed.

Being unable to pay your bills does not mean your business is inviable

Let’s say you own a craft brewery. You know how to make great beer, and you have customers who want to drink it. The problem is your sales have not fully recovered from the hit they took over the past two years where many venues that sold your beer closed or reduced their operations. So, while your business makes money, it does not yet make enough to meet your debt payments.

Why start from scratch if you do not have to?

Your suppliers are knocking at your door for payment, and so are the banks. You could go for bankruptcy and close, but doing so will let so many people down, such as your loyal customers and your hard-working staff.  Those you owe money to might not get much back either, depending on the value of assets you could liquidate.

Instead, if you ask for permission to reorganize your debts, it could work out better for everyone. Doing this requires you to file for a Chapter 11 bankruptcy. Seek legal help if you believe it could help you.