Many entrepreneurs struggle with managing the financial stress of running a business. It often takes a tremendous amount of resources to get a company off the ground. And maintaining an online presence, satisfying customer needs and purchasing supplies can create a tough balancing act.
Economic situations and changes in shopping habits can require expensive shifts for well-established businesses. And you could quickly get in debt if you are starting to get your business up and running. However, despite any preconceived notions you may have about bankruptcy negatively affect your market share, filing bankruptcy may help your business succeed.
Bankruptcy can have financial advantages
Depending on your circumstances, you may have different options to get your business back on track. Filing Chapter 11 could allow you some space to prepare a plan for a reorganization. And Chapter 7 would liquidize your business assets and discharge the debts you are unable to pay.
Do you wonder how this could benefit your business? Depending on your specific needs, you and your company may profit from:
- Increased competitive advantage. The opportunity to make partial payments and suspend some of your obligations temporarily may free up some resources you can dedicate elsewhere.
- Renegotiated contracts. Your suppliers and vendors may be willing to renegotiate your contracts, so you can continue building your business while reducing your debt.
- Minimized personal liability. Closing your business is probably not your first choice for handling financial trouble. However, should that become necessary, filing bankruptcy can protect your personal assets.
Unfortunately, your business may go into debt for multiple reasons, and many factors can contribute to your need to explore your options for regaining financial control.
However, if you experience economic difficulties, learning about the opportunities available to your business can allow you to make the right decision for you. And in some cases, experiencing some temporary discomfort or embarrassment could redirect your path to success.
