If your business is experiencing severe financial difficulties, you must determine a solution.
1. Borrow additional funds to save your company
2. cease making payments on your debts and default on your loans
3. Declare bankruptcy on behalf of your company
Unfortunately, obtaining additional financing for your business is not simple. And if your business plan requires revisions, the task will be even more difficult. And if you wish to remain in business, you cannot cease paying your bills or default on your loans. It will represent the start of the end.
The most practical method to stop creditor phone calls is to declare bankruptcy, but you will lose a substantial amount of financial credibility.
When filing for bankruptcy for a business, you have the option of submitting under chapters 7, 11, or 13. For your business, bankruptcy may result in immediate closure, whereas other businesses may remain open throughout and beyond the bankruptcy process.
Different varieties of bankruptcy will affect your business differently:
Chapter 7 - If you intend to permanently terminate your business and are filing bankruptcy, you will likely file chapter 7 bankruptcy. Chapter 7 is frequently referred to as """"liquidation"""" because, as part of the process, all of the business's assets are liquidated and the proceeds are used to pay off creditors.
Chapter 13 - If your business is a sole proprietorship, it may be eligible to file for chapter 13 bankruptcy, whereas a corporation cannot do so. The reason for this is that when a sole proprietor files for bankruptcy, they do so as an individual with personal liability for business debts.
Chapter 11 is available to all businesses, including corporations. It has similar characteristics to individual chapter 13 bankruptcy. Chapter 11 allows a business to reorganize its debts and repay them over time. They will have roughly six years to repay their debts.
When deciding to file bankruptcy for your business, the most essential question to ask yourself is whether or not you intend to keep the business open. In contrast, if you are an individual who wishes to declare bankruptcy, you must also consider that filing chapter 7 as an individual will likely necessitate the closure of your business. If your company is an LLC or a corporation, you may be able to maintain operations.
Regardless of the type of bankruptcy you choose to file, it is essential to discuss your options with a qualified bankruptcy attorney. They will be familiar with the system as well as state-specific details such as submission procedures. It is always prudent to discuss your case with a local attorney in the jurisdiction where you will be filing.
Insolvency can be distressing. A lawyer can help the procedure proceed as smoothly and swiftly as possible.""
" - https://www.affordablecebu.com/
