As a business owner, you’ll do nearly everything to help keep our company running. However, when things slow down, you may notice the bills are piling up. As such, you may not know where else to turn. If you have not already, you may want to consider filing for bankruptcy. Unfortunately, many are unfamiliar with this process and assume it carries a negative connotation. Keep reading to learn more about how a Memphis, TN business bankruptcy lawyer can assist you through this process.
Why Might a Business File Bankruptcy?
When you own a business, understanding when bankruptcy could be an option is essential. Most commonly, this is because your company is no longer making a profit, and you can no longer pay the debts associated with their business. As the owner of a business, your goal is to make money. However, when your bills are higher than the profits, considering filing for bankruptcy may be the best option.
Similarly, if your company is making money and has more assets than liabilities, this is a good sign. However, filing bankruptcy for the debt in your business can help eliminate the debt to help you move forward.
What Are the Options for Bankruptcy for Companies?
It’s vital to understand the different bankruptcy options available for businesses.
Chapter 7 bankruptcy is one option, but many businesses tend to avoid it. Filing Chapter 7 will often result in the closure of a business. Though you likely want to keep your company, in some instances, it is not always feasible. As such, this process can help prevent additional harassment from creditors and wipe out the debts to help you move on. However, for sole proprietors, Chapter 7 can keep your business open.
If you’re the sole proprietor of a business, you can file Chapter 13. It is more likely that your business will remain open, as you can reorganize the debts associated with your company. Similarly, Chapter 11 also reorganizes the debts, helping reduce your business debts to keep your doors open. It’s vital to understand it can be a challenge to become profitable again, but it is entirely possible.
How Can a Lawyer Help Me?
Unfortunately, filing for bankruptcy is a complex process that involves a significant amount of consideration. Though it can be challenging to think about the future of your company, it’s essential to talk to an attorney to help you navigate this process. An experienced lawyer will offer the best possible legal guidance surrounding your circumstances to help you achieve the best possible outcome for your circumstances.
At the Arnold Law Firm, we understand how much your business means to you. As such, we will work tirelessly to help you when bankruptcy is your only option. Contact us today to learn more about how we can help you during this challenging time.
