Facing the Dreaded Bankruptcy Questions
In a time of rising interest rates and oil prices, bankruptcy questions often cross our minds.
Small business owners have loans and mortgages; clients have loans and mortgages; and clients tighten their budgets and cut costs wherever possible. This leaves many small businesses and sole proprietors at risk, especially if you do not have an emergency fund (or it has already run out) to fall back on in tough times.
Do you find yourself wondering if you can make it through another quarter? Work has slowed down for a while now. Do you have bankruptcy questions?
Here’s a related Youtube video On Bankruptcy worth watching:
It is no fun struggling through every month. Business costs mounting, taxes to pay and stock to buy. The phone bill arrives, your mortgage is overdue, you can’t pay the car payment and the creditors keep calling. It all just mounts up. Becomes overwhelming. So overwhelming it is hard to work and it all becomes a vicious cycle. You are at your wits end.
You start questioning whether bankruptcy may be an option. There are so many bankruptcy questions it is hard to know how to make that decision. Remember, bankruptcy was always the gamble and the other side to success.
Poor planning, marketing, management and economic pressures are some of the reasons small businesses find themselves asking bankruptcy questions.
Small Business Bankruptcy Choices?
It depends what country you are in but it can affect your life and credit rating for anything up to 7 years or more. In the US, there are several ways individuals and small businesses can file for bankruptcy:
- Chapter 7 – Chapter 7 gives the individual the opportunity to petition the court to have their debts discharged. The debt can be secured or unsecured, and the individual may have to surrender some of their assets to cover costs.
- Chapter 13 – Chapter 13 protects and supervises individuals and unincorporated businesses who want to propose a plan to trade or pay off their debt over time and for up to 3 years.
Making a Decision
You are at the point where bankruptcy questions run through your mind all the time. Should I, shouldn’t I? Struggling with the decision whether or not to declare bankruptcy. And how to make that decision.
If you are unemployed, have no assets, and no mortgage or loans and do not want to apply for a loan for around 7 years, don’t declare bankruptcy. The best advice would be to make payment arrangements with your creditors. But you should still seek expert advice.
A small business owner has a lot more to lose. You have put so much time and energy into your business; built up your assets; but circumstances are sending you broke. Consider whether your liabilities outweigh your assets. Can you trade out of this debt? How long would it take? How can you achieve that?
Look at every possibility and communicate with your creditors – you may find a solution. But, you may need to face the reality that trading out is not possible and bankruptcy is the only solution. Regardless of how hard you try.
Additionally, you may be concerned how bankruptcy will affect your partner so there may be married couple bankruptcy questions you need to consider. It all depends on how your assets are distributed on how this will affect you as a couple.
Bankruptcy is a complex, confusing subject and other things to consider include:
- How to declare bankruptcy?
- How to avoid bankruptcy?
- Filing for bankruptcy?
- Do I need to consider divorce bankruptcy?
Do get advice from financial counselors, accountants and attorneys, and research so you are prepared to make a good decision. There are places you can go where they will find a bankruptcy lawyer for you for free. This link is valuable and will help you find a bankruptcy attorney who meets your bankruptcy needs. Do you need a Bankruptcy lawyer?
Copyright Bankruptcy Aid
Tags: bankrupt, bankruptcy, bankruptcy questions, foreclosure, in debt