A Minneapolis Bankruptcy Attorney Can Help You Solve Your Financial ProblemsPosted on August 30, 2010 by Michael Hoverson
Bankruptcy isn’t the answer for every business owner going through financial difficulties, but when it is, it’s better to have a Minneapolis bankruptcy attorney represent you instead of trying to go through it alone. There are too many details and loopholes to worry about for someone who isn’t experienced and knowledgeable about the laws governing bankruptcy. It is, after all, a legal proceeding.
Many struggling individuals and business owners think that if they file for bankruptcy that they won’t have to pay their bills. Unless you qualify for Chapter 7, that is not the case. With Chapter 11 or Chapter 13, bankruptcy will protect you from creditors while you’re trying to get back on your feet, but you’ll still have to pay. They are both essentially a restructuring of debt to allow you to hang on to your company or personal assets while you try to turn things around.
In the current economy, many businesses are filing bankruptcy to protect their assets in the face of dwindling profits, high unemployment, and a difficult credit market. Loans and financing aren’t available, making it necessary in many cases to operate on a cash only basis. In order to do that, certain bills often go unpaid. A bankruptcy filing may put those creditors on hold for a while, giving you a chance to build your business back up. Once again, a Minneapolis bankruptcy lawyer can help you make the right decision in instances like this. Relief is available if you know how to get it.
Business owners and private individuals often dread the word bankruptcy because of the stigma attached to it. There’s a feeling of failure attached to admitting you can’t make ends meet, and it doesn’t have to be there. Bankruptcy was developed as an option for those who can’t pay today but know they can turn things around if given a chance. There’s nothing about it to fear and no shame needs to be felt if you take advantage of it. In most cases, it’s a sensible and very intelligent business move.