What happens when you want to keep your business going, but you’ve run out of money? You could look for a loan or a line of credit, but credit scores may make this difficult or impossible. If creditors are harassing you and bills can’t be paid, it might be time to consider bankruptcy.
Bankruptcy for businesses is not often as final as people undergoing the process, although people can also find relief and keep some required assets if they can recover without liquidating them. Many businesses file Chapter 11 bankruptcy, which often involves a reorganization of any remaining assets and a plan to resolve some or all debts.
A major retailer of housewares has filed for Chapter 11 bankruptcy in a bid to stay afloat. The Fort-Worth based company had already announced a plan to close hundreds of their locations nationwide, which many believe was a bid to sell the firm and its assets.
Many locations will most likely close for liquidation anyway, which may reduce the costs on the flagging retailer as well as raise some capital. If lenders and a bankruptcy court approve the plan, the company may streamline its remaining operations and emerge from bankruptcy within a few months or years.
Business owners thinking about bankruptcy as an option may consult an attorney on the best way to prepare a filing after eliminating all other options. A lawyer can also represent a business’ interests in court and negotiations with creditors. No one should have to go through the process of recovering from financial problems without the appropriate help.