Business Bankruptcies:

If you own a business that is currently experiencing financial difficulty, did you know:

1. After you file bankruptcy, it may be possible to continue to operate your business.
2. Bankruptcy provides an orderly way of winding down a business.
3. Bankruptcy may be a way to get out from under an oppressive lease.
4. There is no prohibition from you starting a new business.

Since business bankruptcies are more complicated than personal bankruptcies, they require more time and planning to do them properly. Therefore if your business is experiencing financial difficulties the sooner you seek legal advice, the more your attorney can do for you. There are many reasons that a business may fail, and most of them are beyond your control

• The cost of goods or labor rising too fast for you to keep up with
• Competition from the “big box” stores that moves into the area
• A bad business decision
• Loosing a lease
• Losing a key employee
• Distributor puts the squeeze on you or favoring your competitor
• Down turn in the economy
• Health problems that prevent you from taking care of your business
• General contractor refusing to pay subcontractors in a timely manner

If it is you intent to close a business for whatever reason and there is not enough money to pay all of the creditors, then you need to plan an exit plan. A good exit plan takes some time to prepare. As in many things, timing may be one of the most important factors.

It is important that you choose an attorney who is experienced in this area to make sure that you receive the protection to which the law says that you are entitled.