Acknowledging that one’s business is in financial stress is a difficult but important step. However, acknowledging the problem is only just the beginning. The next reasonable step may be to file for bankruptcy. As Georgia business owners weigh their options, it may be helpful to remember that addressing financial trouble sooner rather than later is preferable. Here are a few other things to keep in mind when considering whether to file bankruptcy.
Even if a business owner decides not to file for bankruptcy, it is still a good idea to talk with creditors as soon as possible. Informing them that one is having trouble keeping up with payments might seem counterintuitive, but can actually be quite helpful. Creditors are businesses and usually want their customers to succeed. Struggling business owners might be surprised to learn that creditors are willing to work with them on this issue.
This might not be enough to fully address the problem, though. After all, a modified payment schedule may not be very helpful when there are still just not enough funds to spread around. In this situation, filing for bankruptcy might be the best solution. It is good to remember that just like a modified payment plan is not a magic solution, neither is bankruptcy.
Bankruptcy requires a certain level of work and effort, much of which may be confusing to those in Georgia who are not familiar with bankruptcy court. Accidentally taking inappropriate or illegal steps — such as transferring business assets to friends — is surprisingly easy. This is why the process of preparing for bankruptcy is just as important as the filing process itself.