Bankruptcy filings have fallen from their high of 1.2 million in 2012 to just over 800,000 for 2016. This significant decrease has been felt by most states aside from Alaska, North Dakota, Wyoming, and Montana owing to the downturn in the fossil fuel markets, Delaware, and areas of Appalachia and the South served by the fourth, fifth, eighth, 10th, and 11th circuit courts. In February 2017, bankruptcy filings have decreased 10 percent from the same period last year, with commercial filings representing a nine percent decline from this time last year. You can take from the figures just about anything you want, as figures are often used to represent and agenda. However, the facts remain that not all small businesses are thriving in this economy.
Here are five signs that you need to speak with a attorney about bankruptcy for small business, and do it sooner rather than later.
- You are factoring your receivables. Factoring receivables are the payday loans of the business world. Factoring means that you are selling your invoices to a third-party at a discount to create cash flow. In some cases you may be selling your receivables for far less than their worth, putting you into a downward debt spiral.
- You have high turnover in staff. If you are having a problem holding on to staff, and have excessive turnovers even with new hires, it may be killing your operating budget. They may be able to sense that something is wrong. Bouncing a payroll check is always a bad sign, and makes people inclined to leave much more quickly.
- You are falling behind on your rent or mortgage. If you’re falling behind on your rent or mortgage, you could be liable to a conviction proceeding or foreclosure. Depending on how far behind you have fallen, you may be able to remedy the situation in the short term. However, in the long-term, you may need to look for a new location that will cost you less.
- Revenues are good, but all your money is going to interest. You may be taking out loans and using credit cards to keep your business afloat, but instead of having some breathing room, you’re being squeezed by interest rates.
- You're getting sued. Rightfully or wrongfully a lawsuit can drain large amounts of capital from business that it needs to survive. A judgment against your business can be more than the business itself is worth.
If you are facing any of the circumstances, you need urgently to speak with an experienced bankruptcy for small business attorney. We can tell you your options, and what a Chapter 11 or Chapter 7 bankruptcy can do for you. It’s never easy to lose business that you have nurtured and grown, but there comes a time when bankruptcy is the better option for yourself, your company, and your future. The first consultation is free at either our West Palm Beach or Fort Lauderdale offices. Make your appointment and let’s start getting your life and your business back on track.