By: Lizzie Weakley
Some small business owners get in over their heads financially or even have to close their businesses; it’s a fact of life. In some cases, this involves having to file for bankruptcy, but most people have very little to no experience when it comes to navigating through this process. You need to have someone who can help you through this process so you don’t make a costly mistake. Here are just a few of the reasons that having a lawyer on your side is the best solution if you’re going through a business bankruptcy.
Bankruptcy can be confusing
There are lots of rules and regulations when it comes to the business world. You may have financial obligations to employees, vendors, and customers. The question then becomes what the best way to manage these contractual obligations is in legal terms. A law firm like McElrath Law may be able to help to get you through this situation. You don’t want to end up on the losing side if you have to take these matters to court.
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There are three types of bankruptcies that you can consider if you own a small business. Each type depends on the other financial matters and the future of your business. Pairing up with an accountant may help you decide which type of bankruptcy is best for your business. Using a lawyer will also help you to file the appropriate forms and take matters to the next level.
Help with creditors
When you declare your small business bankrupt, there will be creditors that need to be factored into the equation. A lawyer would be able to help you to negotiate the best deal possible with any creditors that might be asking for their money. You want to make everyone happy and still be able to salvage something out of your business if possible.
Asset protection
In some instances, there may be assets that are involved in the situation. This could be that your personal assets could be put at risk if the legal format of your small business doesn’t offer protection to these assets. This is why it’s smart to consult with a business attorney when you first set up your business because it’s hard to close this barn door after the horse has escaped and you are forced into bankruptcy.
In order to conduct your bankruptcy business the right way, you need the experience that a professional has to offer. A lawyer may be the best solution for you so that you aren’t struggling through the process for several years. Consider these reasons for how an experienced lawyer may work to your greatest advantage while declaring bankruptcy.
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Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys playing with her Husky, Snowball, camping, and binging on Netflix. Twitter: @LizzieWeakley
