Filing for Bankruptcy After Your Small Business Plans Don’t Pan Out

Opening a small business involves a major investment of hope. The investment of capital that you put into opening your business might seem like a drop in the bucket for corporate giants, but it represents a substantial part of everything you have ever owned. You enter the business venture with the goal that, even though what you are doing still requires effort, it is something that is meaningful to you; if your business venture succeeds, you will not be stuck working at a job that makes you miserable or one where your income is dependent on consumers being able to buy the products you sell or on the industry in which you work not suffering devastation because of nationwide or worldwide forces beyond your control. If you are not imagining that you will one day be a billionaire, then you are less likely to encounter a major disappointment. Even if your expectations are realistic, the fact remains that fewer than half of small businesses close within their first five years of opening. There is a strong possibility that you will still have business debts after your business closes. If you are struggling with debts after an unsuccessful business venture, contact a Plantation chapter 7 bankruptcy lawyer.

What Can Go Wrong With Trying to Open a Small Business?

A woman in southern Florida had been operating a hair salon out of her home, but she could only serve one customer at a time, and the room was crowded with all her equipment. She decided to rent a space in a strip mall to open a salon with multiple chairs to grow her business, but she ran into all kinds of obstacles in the permit application process. After many delays, her permit was denied. Eventually, she had to abandon her plans for opening a salon in a commercial space, because the money from when she cashed out her investment account had run out. She told the Wink news website that she was considering filing for bankruptcy.

Can You Bounce Back Without Filing for Bankruptcy?

Walking away after a business venture does not pan out always means that your finances are leaner than when you started, but it does not always mean that filing for bankruptcy is your best option. Some business debts are secured by business assets, so it is a question of whether you can repay the amount you still owe after you return the collateral assets. You might be able to make the residual debt manageable through a credit card balance transfer or debt consolidation loan. You might also be able to avoid bankruptcy through a process called assignment for the benefit of creditors (ABC), which enables distressed businesses to wrap up their financial matters without the involvement of the court.

Work With a Debt Lawyer About Small Business Bankruptcy

A South Florida debt lawyer can help you decide whether to file for bankruptcy or resolve your debts a different way after a small business misadventure.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

winknews.com/news/lee/cape-coral-salon-owner-faces-bankruptcy-after-permit-battle/article_1ff88ce0-bb9c-4f0c-84bb-b6a824231083.html