WHILE I have written this article especially for small business owners, everything I say here will also apply to everyone who is going through a financial crisis. So, whether you own a business or not, if you are having financial problems, keep reading.
Is your business currently up to its neck in debt and you’re confused about what to do? As a bankruptcy attorney, I’ve been counseling families and small business owners over the last 16 years. If your business is family-owned, there’s a good chance that your business problems are also affecting your marriage and your home life because of the stress that you are experiencing. Your business could be your family’s only or main source of income so if the business is not doing well, the whole family suffers with it. You may try to separate one from the other, but you can’t.
Right now you may be consumed with stress and fear about what is going to happen. If you’re like small business owners, perhaps you’ve even used your own credit to fund your business. If you are a corporation or an LLC, most creditors will ask for a personal guarantee on the business debts so if the business doesn’t pay, then you are personally liable for the financial obligations of the business. Should you, the business or both file bankruptcy? It depends on how liabilities are allocated.
A lot of people seem to think that once they file a personal bankruptcy, they will automatically lose the business. I’ve heard this many times from a lot of business owners who have sat across my desk to seek legal counseling. However, this is not necessarily true. As a matter of fact, most people who file bankruptcy keep their business and if they are able to get rid of their personal debts, they end up in a much better financial position because it often helps the cash flow situation. Every business is different so I cannot generalize any statement I make here. But a knowledgeable bankruptcy attorney will be able to help you understand your options in dealing with both the business and personal obligations. The important thing is that you should not come to your own conclusions without seeking legal counsel and this step alone could be what saves your business and your family from a financial disaster.
If your business is on its way to failing because the expenses exceed the income you are generating, you may be on a fast track to failure if you don’t take action right away. The real tragedy I have seen over the years is that so many failed businesses actually could have been saved had the owners taken action soon enough to look at all the options available before throwing in the towel. Please don’t let this happen to you.
Whether you own a business or not, if you are struggling financially and you are running on very limited resources, I would like to help you understand all your options to help you turn your situation around. For a free personal consultation, you can schedule an appointment by calling Toll Free 1 (866) 477-7772. We have offices in Pasadena, Cerritos and Valencia.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1 (866) 477-7772.
