Small Businesses in Bankruptcy
Bankruptcy is not the only option for small businesses in difficulty. The first decision, of course, is whether the business can carry on at all. If the reason for the business no longer exists, or if the business can no longer be carried on profitably, regardless of any possible or likely changes, ownership must consider closing down the business. This can be accomplished in many ways. Here are some:
- Chapter 7 bankruptcy
- Voluntary dissolution
- Informally closing the business
- Assignment for the benefit of creditors
- Voluntarily permitting a bank or other secured creditor to conduct a foreclosure sale, sometimes referred to as a Uniform Commercial Code Sale or a UCC sale.
- Chapter 11 bankruptcy, followed by a liquidating plan, sometimes called a structured liquidation.If your business can be saved, through resolution of existing debts and making changes necessary to carry on the business profitably in the future, you have options.