Opening a business can be an overwhelming endeavor. While many Rockland residents dream of starting their own entities and being their own bosses, few take the difficult step of forming businesses. Of those that do open their business’s doors, many will face challenges in their first years of operation.
Financial problems can be some of the biggest hurdles that new businesses must overcome, as many must take on loans and other financial obligations to get off the ground. When businesses are thriving, it can be easy for them to make their loan payments; when hard times hit, it can be tough for businesses, like individuals, to make ends meet.
Also, like individuals, businesses can file for bankruptcy in order to take proactive steps toward financial security. A business that hopes to continue operating may choose to file for Chapter 11 bankruptcy, which allows the entity to reorganize its operations in order to become profitable. Businesses that pursue this legal option can often reduce their debt burdens while improving their businesses’ successes for future growth.
However, businesses that are prepared to close and satisfy their lenders and creditors may choose to pursue Chapter 7 bankruptcy. Through the liquidation of the business’s assets and settlement of its debts, a business may wind down and close its doors all while responsibly managing its existing debts.
Filing for bankruptcy may not always be a business owner’s first choice for saving their entity, but it can often be the process that leads a business to financial success. Attorney Ronald V. De Caprio advises clients on both personal and business bankruptcy and is prepared to discuss bankruptcy and debt relief options with new clients in the Rockland area.