Small businesses are the backbone of the economy, producing more revenue for the average person than any large company. However, small businesses are susceptible to changes in the economy and can easily find themselves deep in debt. Every small business needs a trusted bankruptcy attorney in challenging times so that they have the help that they need to avoid the major pitfalls that lead to debt.
What Your Trusted Bankruptcy Attorney Does to Protect Your Business
The biggest advantage of having a trusted bankruptcy attorney is that they can help you avoid bankruptcy altogether. A bankruptcy attorney for a small business knows how to manage debt, which is essential for avoiding bankruptcy. With their help, you may be able to correct any problems within your business so that you won’t have to consider bankruptcy.
How a Bankruptcy Attorney Can Help You
There are several methods that a trusted bankruptcy attorney can use to help with your business.
Assess the Company’s Debt
Bankruptcy attorneys are good at analyzing company debt, which is a problem that many small companies have. In many cases, the debt gets out of control because business owners have no idea what their debts actually are. Your attorney can research all of those debts and compile them while giving you a clearer view of where your company actually stands.
Negotiate with Creditors
A bankruptcy attorney for a small business can also negotiate with creditors to help alleviate those debts. You don’t have to wait until you file for bankruptcy to start working with creditors to fix your debts. Many of them are willing to negotiate changes to payment agreements so that they can get their money without having to resort to legal methods to collect. This is a part of what bankruptcy attorneys do during bankruptcy, and they can start this process at any time. Being proactive about debt renegotiation or consolidation may be enough to keep your company out of bankruptcy altogether.
Prepare for Bankruptcy Before Things Get Out of Hand
When times are tough, you may not be able to avoid filing for bankruptcy. However, when you start the process plays an important part in deciding if your company will survive or not. If you file for bankruptcy before your debts are too large, you may be able to file for Chapter 11 bankruptcy. This is the process where your company can reorganize and keep operating while paying off creditors.
This would be the ideal way of filing for bankruptcy since it gives your business a fighting chance of recovering. However, you have to have a reasonable amount of debt paid off during the bankruptcy for your business to continue. Work closely with a bankruptcy attorney for small businesses to prepare and you may just save your business despite going into bankruptcy.
Contact Kain + Henehan for Bankruptcy Help
Don’t wait until you are deep underwater before contacting a bankruptcy attorney for help. There are things that a bankruptcy attorney for small businesses can help you with, even before you need to file for bankruptcy. Contact Kain + Henehan, bankruptcy attorneys in St. Cloud, MN, at (612) 438-8006 or use the contact form to schedule a consultation about your case.
