Even the strongest companies have been adversely affected by the economic downturn. Recovery has been slow for some, and many have not been able to do so at all. Despite the recession, there is hope. Before contemplating bankruptcy, clients should click here to learn the different ways to restructure the company’s finances.
Settle or Negotiate Business Debt
Most people file chapter 7 as a means of liquidating assets and eliminating debt. Filing means that the debtor must surrender some assets and property, but creditor negotiations may be possible. The options to pay the debt or negotiate with creditors should be used to avoid asset forfeiture and bankruptcy.
Create a Budget
Cash flow is the lubricant that keeps the wheels of commerce turning, and knowing the corporate finances is a critical first step in revitalizing a business. Owners should set a short-term and a long-term budget, which should be reviewed on a regular basis. Installments on a repayment plan should be considered as well. Eight percent per month is a good place to start. If the debtor can’t afford it, hiring a business bankruptcy attorney in Topeka, KS may be a better option.
Consolidate Debt
Owing one creditor is preferable to owing many, and potential clients should consider consolidating all debts into one monthly payment. Consolidation saves money and time in the long term, which can increase the business’ chances of success.
Liquidate Assets
If the business owner has assets that can be liquidated to pay debts, they should do so. Liquidation is a complex process, but it is a part of bankruptcy. Therefore, it benefits the business owner to do it ahead of time to prolong filing.
Make Sacrifices
It may be difficult, but some business owners need to make cuts to save the company. Owners can consider laying off non-essential employees, and they should look for areas of the budget where cuts can be made.
Final Recommendations
The tips given here can put a business owner on the road to financial recovery. However, if the owner follows all steps and is still having problems, they should consider hiring a business bankruptcy attorney in Topeka, KS. Restructuring and refinancing are hard, but a lawyer can provide the help needed to minimize the impact.