We’re right smack in the middle of some extremely uncertain times. Those blessed (or afflicted!) with the entrepreneurial spirit may be experiencing a little more hesitation than they normally would. It’s understandable, given the election year and some ever-changing predictions for the future of our economy.
Unfortunately, starting a business is a very real risk. However, it’s a risk that many have taken before and one that can potentially lead to a very lucrative future. The first step is developing a comprehensive business plan and making sure you are offering something unique and useful to your industry. If you’ve got all of that, though, fear of falling into debt shouldn’t stand in your way.
Options for Small Business Owners
The truth is, financial hardships don’t have to ruin your future or your finances. There is a great deal of legislation in place specifically to help those who have come upon hard times to find a feasible way out.
The most common types of bankruptcy for small business owners are Chapter 7 and Chapter 11. Which they chose depends on the degree of financial troubles and the current state of the business. If you are currently continuing to make a profit, but are unable to keep up with your debts, there are ways to maintain control of your business while outlining a plan of progress.
Eligible Types of Debt
If you fall on hard times, there are many options to help you alleviate your debts and work toward evening out again. While this is all going on, you’ll be protected under an automatic stay, which will protect you from litigation during the proceedings.
Business owners may have the option to cancel contracts and receive reorganized financing that will allow them to maintain ownership of their company. This all depends on the amount of debts vs. the amount of assets the accumulated by the company, all of which will be sorted out with the supervision of the court.
You always have options. The law is set up to help, not hurt, those who have the courage to strike out on their own.