Business Bankruptcy
Is your business on the brink of bankruptcy? Does your business owe more each month than it did the previous month? If so, you need to consider how you will wind up your business.
Just like every business has a strucutred beginning, so too when the business needs to close – you need to structure it’s ending. Most of my clients do not understand the legal consequences that they will face personally if they do not properly wind down their business. If your business needs to close because it is not making enough money you cannot simply close-up shop, keep all your assets, and say goodbye to all your creditors. Not only is this not realistic but you will expose yourself and your assets in the process unless you wind up the business properly.
My job in the business arena is to help companies big and small who need to wind up their business to do it in the fastest, cheapest, and safest way possible, limiting the risk to your personal assets and forcing your creditors not to pursue you personally for their debts. If you are like most companies your business has some sort of assets such as equipment, furniture, customer lists, bank accounts, etc. Your business also has debts such as business credit card debts, utilities, vendor debts, etc. The process of winding up means that the assets needs to be sold to pay off the remaining creditors. Through this process you can limit the exposure to yourself and your personal assets. If you shortcut this process then even after you close up your business you could face the never-ending battle of staving off your creditors for years who are now pursuing you personally.
There are several options to wind down your business. The business can file for a business bankruptcy, the business can go through an assignment for the benefit of creditors, or in some cases you can even wind up the business yourself with the oversight of our office. Depending on the complexity of the business, I can help you choose the best route. Remember, just as you had to follow certain formalities to open the business in order to take advantage of your corporate statuts, so too you will need to follow these corporate formalities in order to wind down the corporation and limit your personal exposure.
Give my law office a call today for a free over the phone consultation and let’s come up with a plan for your business today! (732-734-5889).