When you start a business the last thing you want to think about is bankruptcy. It’s like just thinking about it or talking about it will invite bankruptcy to happen. Of course, that’s not at all how it works. Bankruptcy happens even to good businesses that end up in a bad financial situation because of things outside their control. And bankruptcy isn’t the end of the world for a business, either. If your business qualifies for Chapter 11 bankruptcy, a Minneapolis bankruptcy lawyer can take you to a better place financially and your business will only be stronger after the bankruptcy proceedings are completed.
What Options do You Have?
An important part of the bankruptcy process will be figuring out just what type of bankruptcy you can file for and how it will effect the business. If you must file Chapter 7 bankruptcy, you may lose any assets you have, which means the business will be liquidated to pay what debts you can pay. However, any debts you cannot pay with the assets belonging to the business will be reduced or forgiven entirely. Chapter 13 bankruptcy allows you to retain assets, depending on the case, but you will also be restructuring you debt so that it can be paid off by you within 3-5 years.
The type of bankruptcy that is most beneficial for businesses is Chapter 11 bankruptcy. Your Minneapolis bankruptcy lawyer will be able to tell you whether or not you will qualify for this kind of bankruptcy. Typically, you must be able to show that you are not filing for bankruptcy due to your actions, either mismanagement of the business or illegal activities. If you can file for Chapter 11, you’ll be able to restructure your debts and retain your assets, hopefully regaining better footing so you can continue down the path you wanted to go down: toward success.
Professionals Dealing with Professionals
When you hire a Minneapolis bankruptcy lawyer to handle your filing, you are working with a professional who is as good at filing for bankruptcy as anyone can be. Skill comes with experience, and experienced bankruptcy lawyers understand the system better than anyone else. That means you get a professional in bankruptcy to handle the financial restructuring of your business, which makes good business sense. This is a decision that you will not regret, and it might even yield some very important results.
Running a business is hard work. If you find yourself looking at bankruptcy as one option, contact a Minneapolis bankruptcy lawyer to make sure you get things right.