There are a lot of reasons why a person might get in debt. For some, it’s a matter of poor luck and bad business decisions. Small businesses have a tendency to fail. This unfortunate truth is why more than half of all businesses fail within their first year. When this happens the owner is left holding the ball and trying to recover from serious debt. The average business owner is in debt for at least ten thousand dollars, even more if the business fails and there is no chance of a full recovery from liquidation. There may be other options such as refinancing or credit consolidation. These options aren’t the answer for everyone, but they may be the best way to avoid bankruptcy or falling even further behind on debts. Business owners that can’t use these options should talk to a chapter 7 bankruptcy attorney right away.
Most business owners are in debt as soon as they open their doors. The following year is usually spent trying to be in the black and recover from debt. If it turns out the business isn’t profitable, there are only a few options. Filing for chapter seven may be the only way out. This chapter of bankruptcy is all about liquidating as many assets as possible to satisfy debts and prevent creditors from taking legal action. Details about how the liquidation works can be laid out by a chapter 7 bankruptcy attorney.
Debtors should talk to a chapter 7 bankruptcy attorney right away. Waiting only gives creditors the advantage they need to take action and assure the full debt is eliminated. By liquidating assets, the business owner is essentially holding up a white flag and promising to do their best to pay back whatever they can. The filing process is rather straight forward, but there are many details to cover in the paperwork. If even a single detail is out of place the case could be thrown out or denied. Debtors can visit Law-margulies.com for more information or to schedule a consultation with their local attorney.