| |
|
|
Bankruptcy isnt Your Only Option
by Edward Bryce
Published on this site: October 20th, 2006 - See
more articles from this month
Don't rush into bankruptcy if your business debts are starting to rack
up. Even if it looks like you will never be profitable, don't throw in
the towel yet.
- The Temptation to Quit Will be Greatest Right Before You Suceed
If youve been bending over backwards trying to make your business
work, then you haven't failed. You haven't really failed until you give
up. Ironically, many businesses innovations come during periods of tension.
- Don't End Up Being the Captain That Goes Down with his Ship
Unless you have unlimited liability, such as a sole proprietership
that is unincorporated, don't worry. Even if your business fails horribly,
customers can't delve into your own personal belongings to pay for debts
owed. The exception here is a partnership, and this is why some Enron
employees that were completely not related to the fiasco ended up losing everything
- they were legally a partner in the business.
- Don't Let the World Know
No, it's not dishonest. Informing each and every customer about
why your business isn't doing as well as it used to is a bad idea. They
will immediately run, or think of running. Try to make it look like
everything is fine - business as usual.
- What to do When Creditors Come After You
If you have creditors knocking at your door, chances are youve let
things fall for quite some time. You might want to voluntariliy put
yourself into an agreement with them before you declare bankruptcy.
You can negotiate your debts down to a lower level using bankruptcy
as a threat to them - after all, if you go bankrupt, they get nothing.
- This i Your Last Resort
Bankruptcy is a lot like suicide - it's the absolute last resort.
Having had a bankrupt company stays with you for a long time in everything
you do - your credit rating, your employment history, and even just
in the way you think of yourselfday-to-day. It's better to have everything
wrestled from your hands than to give it up without a fight.
Edward Bryce: For more great bankruptcy related articles and resources
check out http://homebusinessclass.info
|
|
