Business Bankruptcy

4 Pre-Litigation Collection Strategies

When a customer misses payments, it can be a top concern for your business’s profitability. If you need to collect and recover debt, you should explore all resolutions before it escalates to a litigation case. 

You will want to start by identifying the risks and determining if your situation will be successful. For example, what is the debtor’s financial situation? What are their business assets? Sometimes, you can settle disputes before taking them to the courtroom, and therefore, you could save time and litigation costs. 

If you are wondering where to begin, a business lawyer can advise you on the exact steps to take, whether you are in the pre-litigation stage or a legal battle. 

Here are four collection strategies to implement before pursuing a litigation case.

4 Types of Bankruptcy (and How to Restructure)

When filing for bankruptcy as a consumer or for your business, keep in mind that you can get a fresh start to recovery. The Bankruptcy Code allows you to restructure your business and handle debts so you can avoid liquidation, and how well your organization handles this reorganization time will determine a successful recovery.

Also, with a bankruptcy lawyer by your side, you will be able to handle this complicated process and explore the best bankruptcy option for you.

What Is Business Restructuring?

Restructuring is the reorganization of your systems and debts in a new way to increase the efficiency of operations. Sometimes, this may include changing the original structure entirely. Restructuring could also mean adding or dissolving business units that do not necessarily affect the entire structure.

Filing Chapter 11 Bankruptcy for Small Businesses

Small business bankruptcy, while certainly no walk in the park, does not necessarily mean the end of the business. For many small business owners, filing for bankruptcy may actually allow for a second chance. Depending upon your circumstances, filing for Chapter 11 bankruptcy may afford you the opportunity to restructure - while your business continues to operate, and ideally, emerge as a viable entity on the other side.

Three Types of Business Bankruptcy

As a business owner, there are very few things more unsettling to consider than shutting down your business or filing bankruptcy. The US Bureau of Labor Statistics (BLS) finds that 20% of new businesses fail during the first two years, 45% during the first five, and 65% during the first 10. Only 25% of new businesses make it to 15 years or older.
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