If you own and operate a small business, the term “bankruptcy” can seem like a four-letter word. Despite the fact that many fledgling business ventures are unsuccessful, bankruptcy is an option that few are willing to consider. After all, doesn’t filing for bankruptcy mean that your business has no chance of future success?
Thankfully, the answer to that question is “no.” Unless you have filed for Chapter 7 bankruptcy (liquidation), you may be able to reorganize business debt and get back on financial track. Many small businesses that file for Chapter 13 or Chapter 11 bankruptcy are able to become successful and profitable again within several years. And when you begin the rebuilding process, the help of an experienced business law attorney can be crucial.
This is especially true if your bankruptcy was due to legal mistakes or oversights. Perhaps your vendors found and exploited a loophole in your contracts. Maybe a business partner or former employee acted unethically. Maybe a set of otherwise manageable misfortunes all occurred at the same time and your business wasn’t strong enough to weather the storm. Whatever the reasons for bankruptcy may have been, an experienced attorney can often help you avoid those mistakes or pitfalls this time around.
A good attorney may also be able to help you find funding as you seek to re-establish your business. Contrary to popular belief, businesses recovering from bankruptcy can obtain credit, loans and other sources of financing. A good attorney can help you seek out sources of capital and advocate on your behalf. He or she can also ensure that your business is doing everything it needs to do to recover from bankruptcy as quickly as possible.
After going through bankruptcy, working with a business law attorney may seem unaffordable or financially imprudent. On the contrary, it may actually be one of the smartest business moves you can make.