Bankruptcy For Small Businesses
Monday, November 30th, 2009These are hard times especially for small businesses. I frequently hear from small business owners who want to "file bankruptcy for their business." The small business owner usually has personally guaranteed most of his business debts. For some reasons, the troubled small business owner often thinks his first step in a bankruptcy solution is to file bankruptcy for his business. Then, he thinks, he may also file bankruptcy personally for his guaranteed debt and his personal credit cards. This is often the wrong strategy.
I read a good blog post on this subject by Maryland bankruptcy attorney Brett Weiss. People thinking of filing bankruptcy for their small business should read this article. I agree with what Mr. Weiss has written. In most cases, corporate bankruptcy for a small business is not necessary- its a waste of the client's money.
