Yes, you might be considering filing for bankruptcy, but this doesn’t mean that you should stop paying attention to your business debts. Paying and keeping up with certain bills is the only aspect that can help your business continue to thrive. Even when money is tight, you still have to keep up with a wide variety of bills so that you do not fall behind. We would like to focus on these bills so that you have a better idea of what you cannot go without.
Bills That Must Be Paid Even During Business Bankruptcy
Payroll: When a business owner is financially behind, their employees might come last, and this is never a good thing to do. The one thing you never want to do is to stop paying your employees because it could lead to harsh consequences for you. Some states even charge a penalty for employees if they are not paid on time.
One of the biggest consequences might be arriving at your business one day to find that it has been padlocked. You could also be called to court in the form of a lawsuit, especially in cases of independent contractors who might feel as if they do not have the same protections. If you end up sued in court for not paying your employees, your assets might be seized and you could lose everything.
Child Support: Business income can sometimes support many aspects of your life and some of your most important bills, child support being one of them. If the court finds that you are not destitute even when you have filed for bankruptcy, you might find that you could be in trouble with the courts, and even end up in jail for some of the most severe cases. Your business income might also be grabbed immediately by the state as soon as it comes in, which can make it even harder to pay your other debts.
Business Rent: You want to keep your commercial space when you are going through a difficult time so that your business can continue to thrive. If you don’t pay the rent on a commercial space, eviction proceedings might be brought against you. If you decide that you are going to move your business elsewhere to save money, such as into your own home, you might be able to speak to your landlord about how you can get out of your lease.
Estimated Taxes: You need to continue to make estimated payments for your business even if the income you now bring in is faltering greatly. In a financially troubled year, you will probably assume that your income is going to be less than the previous business year. You don’t want to be short on your estimated taxes, as you could receive a penalty from the IRS.
Credit Cards: Credit cards are a lower legal priority to pay off when you are going through business bankruptcy, but should still be considered. The penalties and interest charges will probably continue to pile up against you if you hold off and decide that you aren’t going to pay off your credit cards in full at this time.
Paying Off Business Debts is An Important Part of Bankruptcy
Nobody wants to be behind, which is why, if you are going through the business bankruptcy process, you want to remember to pay your bills and never fall too far behind when it comes to certain aspects. Our bankruptcy attorneys in Texas can guide you and help you make the right decisions when you are going through this complex process. At MJ Watson & Associates, we understand how difficult this process might be for you and we would like to stand by your side. Please reach out to us at 214-965-8240 for more information.