Plenty of people have the dream to become an entrepreneur and own a small business. Unfortunately, however, those who accumulate a great a deal of debt in order to have the business didn’t realize the consequences of having that debt that would lead into many years in the future.
Many small business debtors have delayed consulting with a knowledgeable bankruptcy attorney until the problems have gotten significant, meaning that their options are very limited. Although there are potential opportunities to file for Chapter 7 and Chapter 11 for the small business, there could be spillover proceedings necessary from personal bankruptcy protection through Chapter 7 or Chapter 13.
All businesses regardless of size carry a degree of risk but it is important for business owners to consider various pros and cons before incurring any debt, including asking the following questions:
- If the business becomes unable to pay all of their obligations, what are the risks and impact to the owner of failing to pay any particular debt?
- Are there access opportunities to legal and accounting professionals who can provide better information about the legal and financial impact of taking out a line of credit or other debt?
- Is mine the type of company that requires credit to operate? Businesses where revenue streams are not consistent but expenses are consistent are the ones most likely to need access to credit.
If you are currently a small business owner experiencing significant debt problems, it is in your best interests to schedule a consultation with a lawyer sooner rather than later. While it can be difficult to come to the realization that your financial problems are significant and require insight from an experienced attorney, being able to talk to someone who will understand these issues and assist you with the process is strongly recommended. Do you need to know more about getting a financial fresh start? Contact the Law Office of Joel R. Spivack at 856-861-6203 or by filling out our convenient online contact form to get started today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.