Are you running out of options to save your business? If your business is failing, you may consider bankruptcy as a way to save it. However, before you make this decision, you should speak with a bankruptcy attorney. They may be able to help you use one of the following five tactics to avoid the total loss of your business and assets:
1. Renegotiate Loans and Leases
If your business is in danger of defaulting on its loans or leases, a bankruptcy attorney can help you renegotiate the terms. This may involve extending the loan repayment period or reducing the debt you owe. Renegotiating your loans and leases can give you the breathing room you need to get your business back on track.
2. Restructure Debt
If your business has a lot of debt, restructuring it can make it more manageable. This may involve consolidating multiple debts into one loan or negotiating with creditors to lower interest rates or monthly payments. A bankruptcy attorney can help determine which debt restructuring option is best for your business.
3. Sell Assets
One tactic that a bankruptcy attorney can use to save your failing business is to sell assets. This can help raise money to pay off creditors and improve your company's financial position. Alternatively, selling assets can help you reduce your business's debt.
If you're considering selling assets as part of a bankruptcy proceeding, it's important to work with an experienced attorney who can help you navigate the process and ensure that you get the best possible outcome for your company.
4. Raise Capital
If your business needs additional funding to avoid bankruptcy, a bankruptcy attorney can help you identify potential sources of capital. This may include investors, crowdfunding campaigns, or government grants. Raising capital can be complex, but an attorney can guide you through it.
5. File for Chapter 11 Bankruptcy
If all other options have been exhausted, filing for Chapter 11 bankruptcy may be the best way to save your business. This type of bankruptcy allows businesses to reorganize their debts and continue operating while they repay their creditors over time. A bankruptcy attorney can help you determine if this is the right option for your business and assist with filing.
Financial difficulties can be daunting, but it's important to remember that options are available to help you avoid total loss. However, you need good legal help to navigate this tricky phase. Click here for more information on bankruptcy.