Your business did well for years, but when the economy took a downturn, and the local residents began to move away, many of the people who were your regular clients disappeared. You thought it might get better over time, but each year resulted in lower profits until you had none at all in 2018.
Bankruptcy can be a good option if you can't make ends meet as a business. However, depending on your situation, bankruptcy may help you keep your business open or shut your doors for good.
Consider Chapter 11 bankruptcy to stay up-and-running
If you have seen any improvement in the local area, have noticed an uptick in customers or have gained a major buyer this year, then closing your business may not be what you want. Still, the past years of low or no profits took a toll. That's what Chapter 11 bankruptcy helps with. It allows you to take time to restructure your finances so that you can emerge from bankruptcy with a plan of action to stay viable in the future. During Chapter 11 bankruptcy, you may spend time renegotiating contracts or working to eliminate debts, so you can keep your doors open, continue to employ your workers and keep serving the community.
Not all businesses have to go through a liquidation bankruptcy and close their doors, but what you do will depend on your circumstances. Our site has more on bankruptcy for businesses and what you should consider if you're thinking about entering into bankruptcy to help your business or close it down for good.