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SMALL BUSINESS DEBT

OPTIONS FOR BUSINESS DEBTS

Business debts may be discharged in a chapter 7 bankruptcy or be reorganized in a chapter 11 or 13.

Business owners may also opt for a workout with creditors that is outside of any court proceeding.

For an outside workout to succeed and be accepted, it is usually necessary to have an attorney act for the owner and put together the financial information that creditor require and to insure sure agreements with creditors are binding on them.

CONSULTING WITH AN ATTORNEY TO DISCUSS BUSINESS OPTIONS

The best time to seek professional advice is well before you are knee-deep in financial trouble. Most business owners are embarrassed to admit they have financial problems but it happens to everyone at one time or another. It is important not to try to go it alone.
Your attorney should work closely with your CPA to solve your problems.

WHAT TO TAKE TO AN INITIAL INTERVIEW WITH AN ATTORNEY ABOUT YOUR BUSINESS DEBTS

Financial problems can cause you to feel disorganized. So, here is a list to what you will need to take in order to get the answers you need to make a good decision.

A complete list of business debts
A complete list of business assets by category and estimated market value
A copy of any profit and loss sheet and the last tax return filed
Copies of any current leases
Copies of tax bills, law suits, levies or judgments
Papers showing the form of your business organization
If you operate as a sole proprietor or if you have personally guaranteed any business debts, you should also bring a list of personal debts and assets.

With this information, you can expect your attorney to give you information about all the options that are open to you for resolving your debt.