Small Business and Bankruptcy

Many factors contribute to the financial success of a company. Since it’s opening, it faces a lot of bureaucracy with taxes, fees, and other costs related to setting up the business. A newly opened company needs to pay taxes every month, whether it has profited or not in most states. This ends up burdening the entrepreneur, and it takes a lot of persistence and proper management to keep the company open.

Those who are affected by the crises and economic recession in the country suddenly find themselves in a situation of accumulation of debts and the impossibility of paying. The tough decision, but an efficient way to handle your creditors is to file bankruptcy.

Unexpected Issues

No one goes into business, expecting to close the doors or have so much debt; you cannot keep the business operating. Even when you have done everything correctly, unexpected issues such as the Covid-19 virus’s lockdown can stop your business in its tracks. No customers, no income.

Bankruptcy

One of the advantages of bankruptcy for the entrepreneur is, as provided in Article 159 of the Bankruptcy Law: the bankrupt is free from debts, and the entrepreneur is rehabilitated, even if he does not pay a single debtor, after five years from the end of the bankruptcy proceedings.

If you are struggling with your small business and would like to continue operations with a restructuring type of bankruptcy, or eliminate your business legally with a liquidation type of bankruptcy, contact a McAllen bankruptcy attorney to discuss what you can do for financial relief.