As a Wisconsin business owner, you understand that your company’s financial status is going to fluctuate alongside national, local and global economies. You may have a few consecutive stellar years, then a financial crisis hits you. If you have a strong support team in place, you may be able to make a few adjustments, implement creative ideas and bounce back without any far-reaching, long-term negative consequences.
It’s not always that easy, however; in fact, sometimes you must explore additional options to find a solution that allows you to get your financial train back on track without hanging a “closed permanently” sign on your storefront (whether you have a brick and mortar facility or are primarily e-commerce based). The good news is that there are several types of bankruptcy that may help you wipe the slate clean and start afresh without ever closing your doors.
Determining the best course of action
To decide which path to follow regarding restoration of financial stability in business, you first have to determine where you stand regarding assets, projected income and ability to pay back debt. The following types of bankruptcy often help Wisconsin business owners and others stay afloat in the marketplace while working toward becoming debt-free:
- Chapter 11 bankruptcy is often the best choice if you are confident that you have adequate means to satisfy debt and plans to generate profit down the line. This type of debt relief involves reorganizing your payment plans and, perhaps, restructuring your business model.
- If you’re a sole proprietor, you may be eligible to submit a petition for Chapter 13 bankruptcy, which is typically for consumers. Your payment plan would be reflective of your earnings, liabilities and assets but could help you hold on to major assets that you might otherwise lose if you were to file personal bankruptcy, such as Chapter 7.
You may be going through a rough time financially, but that doesn’t necessarily mean there is no hope to rebound and lay the groundwork for a stronger business future. Many business owners come away from bankruptcy stronger than ever and are able to achieve success after they reorganize their payment plans, pay back debt and take one step at a time to rebuild the companies they worked so hard to launch.
You don’t have to go it alone
It’s understandable that you’d want to keep your company’s financial problems private; however, it can be quite helpful to speak to someone who is well versed in debt relief regulations to obtain guidance and support that may prove invaluable to help you overcome the obstacles you are currently facing.