As the economy continues to struggle, many businesses will find they need to restructure debt with their creditors or file for bankruptcy. Elizabeth Carol Freeman, a partner in Jackson Walker’s Bankruptcy, Restructuring, & Recovery practice, lists three things for struggling business owners to consider right now.
- “Cash is King.” Maintaining liquidity is important for a business to continue operations through the process. It is possible to be too broke to go bankrupt.
- There are creditors (and taxes) that still need to be paid.
- Gather data about your business, and make sure you know your business operations well enough to understand if there is a viable business to be saved.
Timing is important as well. Do not wait too long before contacting a restructuring advisor, as delays could destroy a good business.
View this Fast Takes episode covering what creditors should consider before a business restructures or files for bankruptcy »
The music is by Eve Searls.
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