If you are the owner of a small business in the state of Ohio, you will know about the key challenges that small businesses face. Cash flow can be a big problem, and high interest rates of loans and overdrafts can mean that companies can get into a never-ending cycle of debt. In addition, maintaining a loyal customer base while competing for prices with larger firms can be very challenging indeed.
Often, small businesses will end up in a position where their best option is to file for bankruptcy. Filing for bankruptcy does not mean that you will never be able to revive your company. In fact, it can mean quite the opposite. Filing for small business bankruptcy can help you to get a fresh start from your debts and set up your business for success. In general, you have three main options for filing for bankruptcy as a small business in the state of Ohio.
1. Reorganizing Your Business Through Chapter 11
If you see a strong future for your business, filing for bankruptcy through Chapter 11 is probably your best option. This will help you to look at the most profitable parts of your business and reorganize the structure so that it becomes possible to pay off your debts.
2. Ending Your Business Through Chapter 7
If you want to simply liquidate your failing business and move forward with your life, it is likely that filing for bankruptcy under Chapter 7 will be the best option for you. Doing so will enable you to use the assets held within your business to pay off all the debts. In addition, you may benefit from having some of the debts dismissed.
3. Using Chapter 13 Personal Bankruptcy For Your Small Business
Chapter 13 bankruptcy is usually for individuals. However, it can be beneficial for very small businesses such as sole proprietorships. Filing under Chapter 13 will help you to create a repayment plan so that your debts are more manageable.
If you are the owner of a struggling business, it is important to assess your options before the financial situation get worse. By taking action sooner, you will stand a better chance of getting a fresh financial start for your small business in Ohio.