Whether you've heard it in your professional life or your personal one, understand that bankruptcy is not the end. You've likely heard the words “fresh start.” That's not rhetoric — it's the truth. What you do with that new beginning is up to you.
Yours is not the first business to go through bankruptcy. When people look at General Motors, they likely don't think of a bankrupt company — but they were. With the right leadership and the proper amount of time, your company can come back too.
How did you file?
Your attorney will have gone over the options; the right one is already planning for your rebuilding phase before you file. You can choose from Chapter 7, Chapter 11, or Chapter 13 — each with different pros and cons that impact your rebuilding strategy. With Chapter 13, you'll develop a multi-year payment plan; a small-business owner filing under Chapter 7 can be finalized relatively quickly. Map out your plan based on how you filed.
Time to rebuild
This is where you incorporate your past and present. Mistakes and obstacles become valuable when you learn from them. What series of decisions led to bankruptcy? Can they be avoided? You built your business once, and you can do it again — now with a new set of circumstances to weigh:
- What assets do you have (including business property)?
- What debts do you still have?
- Do you have any revenue streams available?
After bankruptcy, your credit score will be lowered significantly, making loans harder to get — but not impossible. Every payment puts you one step closer to a higher score. Another route to funding is taking on a partner or investor: your business has potential value, and the right partner with good credit could become a new source of funding if it's right for your future.
Maxwell Dunn is more than a bankruptcy firm — it's a business advisory firm. When we discuss bankruptcy, it's with your future and goals in mind. Contact us today to schedule a consultation.
Talk it through with us
Have a question about your situation?
