Hello, my name is Andrew H Griffin the third I am a California bankruptcy attorney with over 35 years of experience If you own your own business and that business is in trouble or even just not doing as well as it once was Among the tools. You should consider using its business bankruptcy if you want to continue to operate your business, but restructure its debt Your options are chapter 11, which is business reorganization and chapter 13 Which is personal reorganization in contrast a chapter 7 is liquidation How do you know which is the best choice like any other to bankruptcy topic the answer depends on the situation? Factors that will go in determine which is the best option include how the business is organized if it’s a sole proprietorship corporation or partnership How much total debt the business owes? How much debt you personally have guaranteed for the business and even how much personal debt you have? your business assets as well as your personal assets may be a consideration the most Important factor of all may be how the company is doing and what the prospects are for The future is the business on a downward slide Has it just hit rock bottom or is it improving but not fast enough to keep up with the demands of creditors? There are some parameters that might make the choice easier For example, if you have a corporation and there is very little crossover between a corporate debt and your personal debt Chapter 11 may be your only option on the other hand if your business is Unincorporated or if you’ve run it out of your own back pocket without a lot of separation between your personal and business Assets and liabilities chapter 13 may seem a better fit. There are always circumstances that that can turn a typical case on his head the only way to make an informed decision is to consult an experienced bankruptcy lawyer and go through the process of Examining both the legal issues as well as the practical issues Legal issues include things like debt limits and how business debt is collateralized Practical issues include whether you need dancing to continue to operate and whether the value of a business is worth preserving given the cost of bankruptcy Are you getting the sense that the decision to file bankruptcy requires a great deal of thought and planning? I hope so because this is the central message here I would say that in almost every case planning makes all the difference You’ve heard about big companies filing bankruptcy Both of them do so only after weeks or months of planning communication with lenders and other parties and hiring consultants and other professionals to help in the tear around turnaround process a Small business may not require quite the same level of planning It may not be economically feasible to hire turnaround experts But the more planning the better the outcome is likely to be some large corporate chapter 11 predators even go into the filing with with a reorganization plan already approved by the creditors Called a prepackaged or prefect chapter 11 that doesn’t work with every case But it certainly helps eliminate some of the uncertainty of a bankruptcy reorganization even if you’re a reorganization isn’t going to be a pre-pack your Realization plan should be a part of your thinking from day one it is easy to get caught up in the mechanics of the bankruptcy planning the filing the paper the paperwork the meetings and the Administrative tax and overlook the long term planning or as we like to say around here gets so busy fighting Alligators you forget to drink the swamp. You should go into a business reorganization With a clear idea of what you want to end up where you want to end up for example your goal may be to extend short-term liabilities into long term debts, or Convert debt to equity or even find a buyer for the business If you are just sort of vaguely thinking about bankruptcy the various who will buy you some time to turn things around You are probably wasting your time and money Time can certainly help but need to have a plan You need to have a plan to make it work for you and if you want if you wait until the absolutely last minute to consider bankruptcy or even a file bankruptcy you are depriving yourself and Your business are a lot of benefit of bankruptcy reorganization If you feel that your business is in a downward slide cycle and maybe especially if you think things are looking up But you are carrying too much debt because of a downward cycle Consult an experienced bankruptcy lawyer who can help you work through the options and a plan for a more prosperous future This is Andrew Griffin the third at andrew griffin law office calm today We are helping you understand the bankruptcy process If you want to learn more about bankruptcy Go to andrew griffin law office com2 get a free copy of my book you can buy for a 1695 I want to give everybody an opportunity to get that for immediate free PDF download or click the link and you can get it Download for free