Business in trouble? Deciding if bankruptcy is right for your business
Owning your own business is tough, even in the best of circumstances. We know quite a bit about that! In our current business climate, threatened by a pandemic during a year unlike any other, it is downright brutal. But how can you tell the regular struggle from a business in trouble? When do you know that you need help? We want to help, even if it means filing bankruptcy is not right for you. So here are a few questions to ask yourself if you’re considering bankruptcy for your business.
You may need to consider bankruptcy for your business if:
You’ve been struggling for a long time.
Most people know that starting your own business is a long and difficult road. If you’re just starting out (in your first five years) then take a deep breath. Reevaluate your business – what does success look like? Do you need to make adjustments to your business plan? Can you restructure your business to reduce overhead or reach more customers? We know bankruptcy is your last choice – it should be! Sit down and consider all of your options.
If you have a more established business, we want you to think about when you last felt the business was successful. Was it before an economic downturn? Is a tough economic year or two something you can ride out by cutting back a little? Do you have options to reduce overhead, or would a short inflow of capital allow you to continue on for a very long time?
Setbacks are part of business (as you well know). Before you consider bankruptcy for your business, determine if your situation seems like a setback or a long-term decline. If you’ve been trying to make your business work for months and you just don’t see a way forward then you’re ready for the next part of this evaluation.
You’re drowning in debt.
This may seem a no brainer, but some businesses that are struggling don’t need bankruptcy because they don’t have a lot of debt. If you can sell assets, get out of a lease or negotiate your loans then you may not need bankruptcy. However, if you are struggling every month to make your credit card payments and other business expenses then it may be time for us to talk. If you’re regularly considering new credit offers, or taking new lines of credit just to pay off old ones then your debt is spiraling out of control. If you’re not sure how much debt your business has, that’s a big red flag for us. It means you need help.
You and your family are feeling crushed by financial problems.
Business owners don’t get to leave their problems at the door when you come home. We have a saying here: it’s not about how much debt you have. It’s about what the debt is doing to you. If you feel caught in a never ending cycle of money problems that spill from home to business and back – it’s time. Time for you to schedule a free consultation with an experienced bankruptcy attorney who can help you find some new options.
You have bankruptcy options.
We keep our first consultation free so that you feel confident making choices about your own financial future. As a business owner, you have so many options, even in bankruptcy. You may qualify for Chapter 7, Chapter 11 or Chapter 13 bankruptcies. If you’re a farmer or fisherman you also have the option of a Chapter 12. They all have pros and cons, and one of them may work for you. You may be able to save your business, keep your assets and finally be able to breathe freely again. We’ll meet with you and go over your situation in detail before you need to make any decisions about your business. Because we care about your success.
We want to be your team.
We are proud to help Oregon and Washington businesses and business owners. We’ve taken on small cases and large corporate restructuring. At Rank & Karnes Law we understand business owners and we live to help you solve your financial problems. Come in for a free consultation, call 503-385-8888. We’ll see how we can help you create the financial future you want.