It’s not something that any entrepreneur probably thinks about as they build their first enterprise: the thought of filing for business bankruptcy. And yet, thousands of businesses, large and small, take this route to get a financial fresh start. While it’s great to have optimism and enthusiasm for the future of your business, it’s also important to know that things don’t always go as planned. However, there are many options available to you, to get ahold on your financial life again, and pave the way to a brighter future.
Most all businesses experience ups and downs with revenue and overall business value. Changes in the market, stiff competition, miscalculated financial strategies, and many other occurrences may put you in a tough spot with your venture. You may go through some lean times, but what is the difference between a temporary setback and a dire situation? At what point should you consider speaking with a business attorney in the Arlington Heights area?
Here are a few signs that suggest it may be time to consider filing for bankruptcy:
- Your personal assets are at risk
Many business owners, especially small business and sole proprietors, may intermingle their personal and business finances, particularly when things are tight. Whether it’s your personal savings that was used as seed money, or personal lines of credit that have kept your doors open, this can be a red flag. Thankfully, most bankruptcies are designed to shield your personal assets from being liquidated, so ask your lawyer about this.
- You have a chronic cash flow issue
One or two late-paying clients, or slow months isn’t the end of the world, but when those things are happening all the time, and creating long-term financial strain, bankruptcy may be an option. If you’re not able to get yourself afloat again with budget cuts, management changes, or some creative business restructuring, it’s often a sign that your growth is at an end.
- Your business finances are ruining your life
Too often, because small business owners are so invested in their companies, whenever the business isn’t doing well, it upsets all the other areas of their lives. Financial stress can leak into your relationships, disrupt your sleep, contribute to health problems, and reduce your overall quality of life. When your business has money issues for a long time, this can take over everything, and it’s not worth it. Bankruptcy can give you a way out, and a way to reclaim your life.
Want to learn more about business bankruptcy? Reach out to us at Charles T. Newland and Associates today, and request your free consultation.