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Why you shouldn't delay filing for bankruptcy

As a small- or mid-sized business owner, you put extensive time, energy and resources into your business. Whether you own a Tampa hotel, restaurant, strip mall, apartment complex or more, the first sign of budgeting or financial troubles may worry you. Yet, when the problem continues to escalate, you may need to consider other options.

Filing for bankruptcy can be daunting and seem like a last resort. However, for some business owners, Chapter 11 bankruptcy can provide you and your business with the financial relief necessary to move forward.

The difficult choice of deciding to file for bankruptcy

Business owners across Florida may have considerable worries about bankruptcy. In delaying making the decision, they may exhaust all other alternatives, including even draining their own personal funds, savings or retirement accounts into the business to keep it afloat. However, this may not be enough to solve the financial woes of your business. Additionally, it may put your personal finances in a tough position.

When delaying filing for bankruptcy can become an issue

When the debt of your business becomes insurmountable, delaying filing for Chapter 11 bankruptcy can enhance your financial problems and make the recovery of your business seem even more distant. Effects of this can include:

  • Receiving continued harassing calls or letters from creditors or lenders
  • Facing threats of foreclosure, eviction or the loss of electricity or utilities
  • Learning of a Notice of Federal Tax Lien on your business from the IRS
  • Being forced to lay off employees to reduce the size of your workforce

Additionally, the stress of enduring such financial troubles can be overwhelming. Many assume that filing for bankruptcy makes them or their business a failure. However, this is not the case.

Bankruptcy does not have to signal the end of your business. Many companies have endured substantial financial trouble, filed bankruptcy and continued on with much success. For many business owners, filing for bankruptcy is a rational decision that can provide you with the freedom you need to both restructure or reorganize your debt and work toward a profitable future.

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