How Do You Determine When To File Business Bankruptcy?
Battling ever-mounting debt is a challenging and often frustrating task for both individuals and business enterprises. If you are dealing with this problem in your business, you may be wondering how to determine when to file bankruptcy. Although there are no hard and fast rules pertaining to when to file business bankruptcy, a variety of considerations come into play in that process. Review your revenue flow versus expenses over the course of the past six months. If revenue is constant or declining while expenses are constant or increasing, it’s likely that the time has arrived to consider filing for bankruptcy protection for your business. Analyze delinquent accounts. If your business has an increasing number of accounts with vendors and service providers that are more than 90 days past due, taking more drastic action, such as filing for bankruptcy, may be in your venture’s best interest. Negotiate with your creditors. In this regard, your business likely requires more than the develo
