Many businesses fail, especially in the first years of their existence. The process for a small business is costly and time-consuming. If you are considering bankruptcy, here is what you need to know about the types of bankruptcy and the bankruptcy process.
It is a difficult question - when do you keep on going and when do you declare bankruptcy? Here are some suggestions to help you work through the question and some options to explore before you decide to file for bankruptcy.
Business bankruptcy allows a failing company several options to attempt to work out its financial difficulties and come out again to continue in business. Here is a brief introduction to the business bankruptcy process.
The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act is the new bankruptcy law. Learn about this law and about how the bankruptcy process is administered.
Here is a brief overview explaining the three types of business bankruptcy.
Chapter 7 is a liquidation bankruptcy process, in which the company determines that it cannot continue, so all the assets are sold off to pay debts. Here is a description of the liquidation process.
Chapter 11 Reorganization bankruptcy allows a business to continue operating while under the direction of a manager. It gives the business a chance to pull itself out and possibly succeed.
If you are self-employed, in a sole proprietorship, and you have a regular income, you may be able to file Chapter 13 bankruptcy. Learn more about this bankruptcy type here.
If your business is failing and you are contemplating bankruptcy, you may be wondering which type is "best" for your situation - reorganization or liquidation. This article provides some considerations to help you make this decision. Be sure to check with an attorney before you decide.
If your business is in trouble, you may have some alternatives. Here are three suggestions for ways to avoid having to go through formal bankruptcy proceedings.
This article discusses some of the tax implicationx of business bankruptcy. The tax liability during bankruptcy depends on the type of bankruptcy and the type of business.
A bankruptcy attorney can be a valuable ally during your business bankruptcy. Learn about what a bankruptcy attorney does, specifically for each type of business bankruptcy.
If you are considering business bankruptcy, it is important to find a competent business bankruptcy attorney. Don't just settle for a general bankruptcy attorney who does primarily consumer bankruptcies; look for a business bankruptcy specialist. Learn more about selecting a business bankruptcy attorney.
