While small businesses remain the backbone of our country, many are still feeling the effects of rising costs, supply chain issues and other workplace challenges. While some have succeeded as successful entrepreneurs, unfortunately other owners are having to make the difficult decision to declare bankruptcy before finding themselves sinking further into financial ruin. What most small business owners don’t understand is that before accumulating even more overwhelming debt, there is sometimes a way to save their business and avoid ending up with their life and finances in shambles.
Before you have one more sleepless night, contact the expert bankruptcy attorneys at Todd Cushner and Associates, P.C. Having already worked with countless small business owners in the Westchester area, they know the importance of working with someone you can trust while navigating such a personal matter. They will walk you through your options and explain how filing for bankruptcy and the resulting restructuring process can perhaps rescue your business while also keeping hounding creditors at bay. They will help you to learn not only the timing involved, but also how the process will affect you and your dedicated employees. It’s crucial to understand the immediate steps you can take to feel empowered and educated about your many choices, starting today.
Bankruptcy Options for Small Business Owners
While the notion of filing for bankruptcy can be overwhelming, what’s important is to understand the legal options that are available to you. Small businesses can either file Chapter 11 or 13, which is a way to restructure your debt and remain viable, or file Chapter 7, which is a complete liquidation of your business and any remaining assets are paid out to your creditors. At Tod Cushner and Associates, they help to break down the process so that you are clear on exactly what will happen next. After asking you some specific questions, they quickly move to filing the forms that will set you on the path to legally getting out of debt and back to once again focusing on growing your business. The risk you take by not working with someone extremely knowledgeable about the nuances of this process can be the difference between future success or devastating and long lasting effects on your way of life.
The Effect of Bankruptcy on Sole Proprietorships vs. Corporations
The reason it’s so important to have an experienced and trusted bankruptcy lawyer is to help you navigate the sometimes complex legal system. For sole proprietorships, declaring bankruptcy for your business also means that you will be declaring personal bankruptcy, which means your personal finances will be affected. This includes having a negative impact on your personal credit score and credit rating.It can also impact use of your credit cards and how long you will have to wait to be eligible for a new loan. In most cases when a corporation files for bankruptcy, it will not have an effect on your personal financial situation, but can affect you in other ways depending on your role and contracted obligations.
Bankruptcy and Business Debt Strategies for Recovery
There are many strategies for debt recovery when filing for bankruptcy which is why it is so important to work with bankruptcy attorneys who are not only experienced, but also take your business goals to heart. Many small business owners rely on the lawyers at Cushner and Associates since they take the time to get to know you and can offer advice on the specific steps to take knowing your personal situation. Filing for bankruptcy is not a simple matter of filing forms in court, but instead it can also involve litigation from disgruntled creditors who have been making your life miserable. You may also need protection from fraudulent transfer litigation and other issues that require an expert. Your best bet for success is working with someone not only familiar with you and what makes your business unique, but is also able to adeptly maneuver the legal options, achieve a final solution and provide you with a clear path forward.
Declaring bankruptcy is never easy, but if you are drowning in debt, worrying all of the time and using personal finances to help keep your business afloat, now is the time to take action. While it’s a huge step to take, the relief you will feel will be immense and most importantly it will allow you to follow a fresh and perhaps new entrepreneurial dream.
Call us at 914-600-5502 or contact us here to start the conversation about how declaring bankruptcy can affect you and how we can help you navigate the process.
