Your Business Bankruptcy Kit
If you have decided that business bankruptcy is your only choice, then you need to prepare for the filing. (By the way, business bankruptcy should be your last choice. See our sponsor message for another alternative below. We recommend trying this proven alternative before filing.)
The following is our business bankruptcy preparation list:
- Gather names of reputable business bankruptcy attorneys. Ask trusted colleagues, advisers and mentors for recommendations.
- Interview attorneys. The biggest mistake that a leader of a troubled business can make is to go to the first attorney on the list and immediately start the filing process. Look for an attorney that wants to help you and your business and offers alternatives to a bankruptcy filing. Run away from any attorney that is in it just for the fees … there are plenty of them out there!
- Have up-to-date financial statements.
- Prepare a list of all creditors and addresses. It is best to rank these based on creditor claims from highest to lowest.
- Prepare a schedule that lists all assets in detail including book value and your fair market value estimate.
If you have these items, your business bankruptcy should go smoothly, and you will not face any problems with the court or US Trustee.
Sponsor Message from Turnaround Central
You should only consider business bankruptcy if you have tried to turnaround your firm but failed. If you have not spent at least 6 months trying to save your firm using cash control, cuts in force, debt restructuring and revenue growth techniques, then you must put in place and carry out a turnaround plan immediately.
You can learn how to fix your business and avoid business bankruptcy with our training manual, The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide. Our guide will teach you how to restructure your debt, lower your debt payments, increase your sales, find financing and much more. We encourage you to visit our website and read our article on how to fix and rebuild your business.
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