{"id":3971,"date":"2008-08-26T15:56:16","date_gmt":"2008-08-26T20:56:16","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/08\/26\/bankruptcy-options-for-businesses\/"},"modified":"2008-08-26T15:56:16","modified_gmt":"2008-08-26T20:56:16","slug":"bankruptcy-options-for-businesses","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=3971","title":{"rendered":"Bankruptcy Options For Businesses"},"content":{"rendered":"
by Robert Bain<\/div>\n

Businesses large and small find it can be hard to stay afloat. The fact that there is so much competition is a huge factor. Toss in that the economy isn’t well so consumers have to be careful of what they buy and you have more businesses filing for bankruptcy. Some of them have died at their own hand due to ineffective business practices or not handling their debts well. Regardless, the fact that bankruptcy is available means they may have a solution.<\/p>\n

It isn’t an easy decision to file for bankruptcy though and that is something people need to realize. The law doesn’t make it easy for a business either so you can’t do so in an effort to keep all the money you make and to run. There are various types of bankruptcy that a person can apply for. Understanding the basics should turn you to someone with more experience. They can help you with all the details of the process.<\/p>\n

Be very honest with the information you supply to the attorney so they can assist you. It can be embarrassing to face bankruptcy but you need to understand they are in place to help you. If they don’t have all the right information it can prevent them from providing you with the right circumstances. One you hear about the most is Chapter 7 bankruptcy which is reserved for those companies in dire need of financial relief.<\/p>\n

Chapter 7 is the form that those businesses who no hope of recovery may need to file. This is generally for large businesses that have huge amounts of debt they need to get assistance with. Just because a company is bringing in large sums of income doesn’t mean they are making money. Be prepared to provide detailed financial records though in order to get the courts to remove your unsecured debts.<\/p>\n

For small businesses who have to file bankruptcy, Chapter 13 is often the course to follow. This is a type of reorganization plan that will reduce the amount of debt that is owed to each of the creditors. It also allows those payments to be allocated over a long span of time. This can sometimes give the business enough income that they can keep the business open. This may be their last hope of surviving due to problems early on or high expenses that resulted in very little profit being maintained.<\/p>\n

Chapter 11 is a common one as well for those companies who want a chance to get back on track. They can restructure what they have in place so they can continue the business. This could turn out to be profitable in the long run so many businesses give it a try instead of tossing in the towel. It can be hard to get credit<\/a> though in such a situation as the bankruptcy will be there on the company credit report for at least 7 years.<\/p>\n

Bankruptcy can be expensive as well so you need to have money aside for it. The costs of filing vary depending on location and the type of chapter you file under. There is also the high fees any competent attorney is going to end up charging you for their services. That should be a fee you are willing to pay though if you find bankruptcy is the right road to take.<\/p>\n

Never jump into such a decision though as it does seriously impact your business. Your credit will suffer and you may find it hard to make a profit at all afterwards. Yet if you are in a desperate situation bankruptcy can be the only option you have to give your business a chance to recuperate. This should all be evaluated in detail before a decision is made one way or the other.<\/p>\n

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About the Author:<\/div>\n
Robert Bain is a seasoned business author. Read the ups and downs of small business credit, building corporate credit<\/a>, aged and shelf companies<\/a> and many more topics.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Businesses large and small find it can be hard to stay afloat. The fact that there is so much competition is a huge factor. Toss in that the economy isn’t well so consumers have to be careful of what they buy and you have more businesses filing for bankruptcy. Some of them have died at their own hand due to ineffective business practices or not handling their debts well. Regardless, the fact that bankruptcy is available means they may have a solution.<\/p>\n","protected":false},"author":1781,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-3971","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1781"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3971"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3971\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}