Rumor has it that the economy is on the road to recovery. Unfortunately, businesses are still suffering from years of the economy being in the trash. If you are the owner of a small business that is struggling financially, you might be wondering whether or not it is time to consider talking to a BK lawyer in Las Vegas about filing bankruptcy.
What Kind of Bankruptcy?
First, you need to establish what type of bankruptcy your business is going to be filing. This depends on a number of legalities under which your small business functions. There are different ways to file depending on if you are a corporation, partnership, or proprietor.
Sole Proprietor
If you have never taken the time to incorporate your business and you do not have a business partner, you would fall into this category. This is someone who commonly uses their own name to market their products and their business.
As the sole proprietor, you are responsible for all the assets and finances associated with your business. You can file Chapter 7, 11, 13, or 12 as a sole proprietor depending on your financial situation.
When is it Time to Throw in the Towel?
Bankruptcy itself is a pretty scary term that just sounds a little confusing. You see things in the media all the time about how well-known individuals and businesses have gone bankrupt. How did they know when it was time to throw in the towel anyway?
You should start by asking yourself the following questions:
- Are you receiving daily phone calls from bill collectors?
- Are you only making minimum payments on all of your bills?
- Does the thought of your finances and debts scare you?
- Do you even know how much money you owe people?
If you answered yes to more than one of these questions, you have a problem. Whether you own a business or you are just an average everyday person with a lot of debt – it might be time to consider hiring a bankruptcy lawyer.
Filing bankruptcy is a little ironic. It is something you do when you do not have any money and are in a lot of debt. Unfortunately, it costs money to hire a lawyer and to file. There are waivers you may qualify for depending on what kind of income you currently make. The biggest reason why you want to hire a lawyer is because filing bankruptcy is complicated. It would be a shame to mess up the first time and have to pay to file a second time because you messed up the paperwork.