By Joseph Devine
Small Business Bankruptcy
While large, established companies often find themselves in serious financial constraints during tough economic times, smaller businesses may suffer even more. Large corporations may benefit from government bail-outs and assistance, while smaller companies and shops may have nowhere to turn if they find themselves in trouble.
Small business owners may have to worry about the rent for their commercial spaces, employee payroll, payments to investors and lenders, and other costs of doing business. If their revenue dries up or if the company is making far less than it is spending, the small business owner may consider filing for bankruptcy.
If a business fails to make timely payments to its creditors, they may be forced into involuntary bankruptcy. If a business has a certain number of creditors, its creditors may be able to petition for bankruptcy on the behalf of the company to attempt to gain compensation for debts that are owed. They may pursue this action if the business is seriously delinquent on its payments or if they fear that it will run out of assets before they can be repaid.
When a business enters bankruptcy, the assets may be liquidated to pay creditors. During the proceedings, meetings with creditors may take place to set up payment plans and organize the business in an attempt to regain profitability. In the event of liquidation, it is important for business owners to understand which assets may be used to repay it's lenders.
Assets may include products and other items that the company has already paid for or created for sale. Furniture and other office items may be sold or auctioned off to repay debts as well. Intellectual property, licenses, and partnerships may also be included in the proceedings.
Property leases, office space, and security deposits left with landlords may also be included in the bankruptcy proceedings. Certain items that may be of value can be included in the case to help repay creditors for their assistance starting the business.
If you are a business owner and are facing a dire financial situation, you may want to consider filing for commercial bankruptcy before your creditors force you into it involuntarily. For more information on commercial bankruptcy, visit the website of the Boston bankruptcy lawyer Joshua Spirn & Associates.
Joseph Devine
While large, established companies often find themselves in serious financial constraints during tough economic times, smaller businesses may suffer even more. Large corporations may benefit from government bail-outs and assistance, while smaller companies and shops may have nowhere to turn if they find themselves in trouble.
Small business owners may have to worry about the rent for their commercial spaces, employee payroll, payments to investors and lenders, and other costs of doing business. If their revenue dries up or if the company is making far less than it is spending, the small business owner may consider filing for bankruptcy.
If a business fails to make timely payments to its creditors, they may be forced into involuntary bankruptcy. If a business has a certain number of creditors, its creditors may be able to petition for bankruptcy on the behalf of the company to attempt to gain compensation for debts that are owed. They may pursue this action if the business is seriously delinquent on its payments or if they fear that it will run out of assets before they can be repaid.
When a business enters bankruptcy, the assets may be liquidated to pay creditors. During the proceedings, meetings with creditors may take place to set up payment plans and organize the business in an attempt to regain profitability. In the event of liquidation, it is important for business owners to understand which assets may be used to repay it's lenders.
Assets may include products and other items that the company has already paid for or created for sale. Furniture and other office items may be sold or auctioned off to repay debts as well. Intellectual property, licenses, and partnerships may also be included in the proceedings.
Property leases, office space, and security deposits left with landlords may also be included in the bankruptcy proceedings. Certain items that may be of value can be included in the case to help repay creditors for their assistance starting the business.
If you are a business owner and are facing a dire financial situation, you may want to consider filing for commercial bankruptcy before your creditors force you into it involuntarily. For more information on commercial bankruptcy, visit the website of the Boston bankruptcy lawyer Joshua Spirn & Associates.
Joseph Devine
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