While bankruptcies have been going down for larger companies, they have been going up for small businesses. Life can hit you and your business with something devastating in a split second, and it is way better to be prepared than to be blindsided. Keep reading to discover why you need a bankruptcy attorney as a small business owner.
Previously, small businesses have had a hard time filing for bankruptcy due to the drawn-out process and all of the red tape that comes with filing. However, your bankruptcy attorney in Houston will be happy to tell you that SBRA, or the Small Business Reorganization Act, added a new subchapter to the Bankruptcy Code that allows small businesses to make their bankruptcy process go faster as long as the business meets the requirements outlined in the subchapter. If your bankruptcy attorney is legitimate and good at their job, they will know about the change and will be happy to help you take advantage of it if you qualify.
It Will Take Longer to Rebuild
Larger businesses have the benefit of being able to restructure and rebuild relatively quickly after they experience a bankruptcy, as they have the assets to do so. As a small business owner, you may not have such resources at your disposal. If you are thinking of declaring bankruptcy, you need an attorney to help talk you through the process of what will happen afterward. You will be in much better shape if you know what is coming after the paperwork is filed and finalized, as you will at least have an estimate on how much time it will take for you to recover.
They Can Tell You Who To Cut
When a business declares bankruptcy, there are often layoffs soon after, as the business might not be able to support all of its employees. As a small business, it might seem impossible to get rid of anyone in the event you need to declare bankruptcy, as each person in each department seems vital to the process. However, your attorney will be able to give an objective perspective and find the fat that can be trimmed should the need arise. This will not be easy, as the people remaining would have to take on more work. For instance, if someone is cut for web design and management for small business, someone else is going to have to take over for them.
Make sure that you and your attorney come up with a plan that gives you enough money to pay your remaining employees while also ensuring that they do not have so much work that they get burned out and quit. You and your bankruptcy lawyer want your business to still run, not be run into the ground.
The Bottom Line Of Business Bankruptcy
Nobody wants to think about having to declare bankruptcy, but it is one of those things that you need to be prepared for if you own a business. Keep this article in mind so you will be prepared if you ever have to declare bankruptcy with your company.