Owning a small business in Ohio can be an immense source of pride. Unfortunately, even the most responsible, dedicated and optimistic small business owners can find themselves struggling with seemingly insurmountable debt loads. Whether you acquired the debt by investing in your business, protecting business assets by fighting necessary legal battles or some other means, if your debt is growing beyond your control, you need to act in one way or another.
Ignoring the debt will not make it go away. Nor is it always a good idea to trust that business will pick up more steadily than normal and that your financial troubles will simply be solved during the course of business. It is critical that as a small business owner, you always have a firm and objective grasp of exactly what your financial situation is comprised of and entails.
If your debt load is too large to be easily solved by the normal course of your business, it may be time to consider debt settlement, loan modifications, debt consolidation or small business bankruptcy. Your unique financial situation will dictate which option is best for you and the health of your small business. An experienced bankruptcy attorney who specifically works with small businesses can advise you of your legal options.
When it comes to protecting your assets and minimizing your financial losses, small business bankruptcy may be an appealing option. But whether or not you choose this specific legal protection, it is critical that you act in some substantial way if your business-related debt has spiraled out of control. Failure to do so can dramatically affect your future.
Source: Fox Business, “Repayment, Settlement, Bankruptcy: Facing Debt from Failed Business,” Elaine Pofeldt, Aug. 7, 2013