Many people believe that bankruptcy is the end of the line when it comes to your business, but it might actually mean a fresh start. Your business is important to you and is also your main source of income, even if you had a year or two where you have fallen on hard times. Depending on the circumstances that led to your bankruptcy and the structure of your business, filing for Chapter 7 or 11 bankruptcy can be a helpful aspect that will aid you in getting back on your feet.
What to Consider Before You Continue Your Business
Many people are faced with the serious and complicated decision of continuing onward with the thing that means the most to them – their business – or closing it down for good. Here are some aspects that you want to think over before you consider closing down your business or keeping up with it:
Are you still making money from the business? If your business continues to make money and thrive in some ways, even if it has fallen behind in others, it is imperative to think long and hard about your decision to close up shop or keep it running. If your net income is consistently negative, then it might be time to close the doors. If there are factors causing you to lose money that you believe could be controlled and you believe are only temporary, it might be wise to consider keeping the business running. It is okay to feel optimistic, but not overly idealistic.
Are the business assets worth more than the liabilities you have? If you have more assets than liabilities in your business, then it is a business that might be worth fighting for if you want to continue onward in the future. However, if you have more liabilities that you don’t think you will ever be able to repay, then you might consider closing the business down through the process of bankruptcy. This is a huge decision to make and something that might happen over time.
Are you liable for any debt? If you are somebody who runs their own business, any money that your business owes is known as business debt and should be considered. Think of it this way: if your business is bringing in something, then it might be useful for paying off debts that you owe. This is why you might consider keeping it running for some time. If you close down the business, creditors might know that their only option to pay off debts is to go after your personal assets.
If you decide to go through the process of bankruptcy, you want to be sure of your decisions. This is because many people might choose Chapter 7 without realizing that it regularly acts as a way to close businesses so that creditors can be paid. If you choose to keep your business, then this might not be the option for you.
Filing for Bankruptcy
At M.J. Watson & Associates, we want you to know how important it is to be sure of your decisions when you work through the bankruptcy process in Texas. If this is something that you believe is right for your business, it might be time to speak with an experienced bankruptcy attorney in your time of need. Luckily, we have helped many business owners file for bankruptcy and have the skills necessary to help you through this difficult time. Please contact us at 214-965-8240 to find out how we can assist you in your bankruptcy case.