Every business owner dreads the time when they are forced to declare bankruptcy. The legal definition of bankruptcy is quite simple: if an entity is unable to pay off its debts with the fiscal assets available, it will be deemed bankrupt.
Businesses usually take out loans from different sources to fund their working capital needs. Most of these loans are categorized as long-term liabilities and current liabilities (which must be paid within the year). However, if there’s a shortfall of cash and the company is unable to generate a profit, it might be forced to declare bankruptcy. Here are some situations in which you should consider hiring a business bankruptcy lawyer in Topeka, KS.
If Your Profitability Continues to Decrease
If your business’ profitability continues to fall year after year, your company’s viability will be affected. You should contact a reputable business bankruptcy lawyer right away since it’s imperative that you inform your investors and shareholders about the company’s going concern. You can visit John Hooge Law Office for more information about the options available to you.
If You Have Looming Debts and No Financial Income
Many businesses end up in ruts because of the bad financial decisions that they make. If you can’t find a way out, you should contact a business bankruptcy lawyer to discuss the options available to you. It’s important that you look for alternative options and prepare for filing for bankruptcy. Your lawyer will help you in wording out notices to give to your local staff as well as all other stakeholders in the business. He or she will also help you in liquidating the company and coming up with different arrangements to satisfy as many parties as possible.
