Bankruptcy lawyers never cease to be surprised by the number of struggling small business owners who come to us at the 11th hour seeking help when they finally realize their business is failing. The business owner who doesn’t know where he stands financially because he hasn’t hired a qualified bookeeper usually falls into this category; as does the over-leveraged business owner who has taken on too much debt because they haven’t paid attention to changing market trends.
Waiting until the last minute to get help with a struggling business severely restricts the business owners’ options. Uunwillingness to recognize the truth in the face of a loan default reduces a debtor’s non-bankruptcy options. Whether facing foreclosure, action from lenders, or the demise of the business, the sooner a struggling business owner comes to us for help, the more flexibility we have with regard to solving the problem outside of bankruptcy.
So, what can a struggling small business owner do to keep his head above water:
1. Watch your finances and hire a qualified bookkeeper
2. Don’t expand too quickly when you have insufficient funds to support the expansions
3. Be aware of changing financial conditions and how these changes affect your business
4. Contact your lender as soon as financial issues come up, they may be willing to work with you
5. Seek council from a certified bankruptcy attorney who can explain your options — both bankruptcy and non-bankruptcy
6. Understand all your options before you make a decision
We can help small business owners untangle their most complex debt issues while protecting their best interests. Remember, the longer you wait to deal with a failing business, the fewer options you have. Contact us at (406) 752-5616 to discuss your options. We can take a look at your situation and provide expert legal guidance based on four decades of small business bankruptcy experience.