A corporate bankruptcy or small business bankruptcy is a difficult thing to face. During these hard financial times more and more small businesses are facing the difficult task of operating their business while costs of operations have gone up and profit margins down. Â Since the majority of small corporations do not have much in assets to begin with, the shareholder/business owner will have to initially personally guarantee any funds for the corporation whether through a bank or other lending institution.Â But incurring debt also means higher costs. If the corporation is costing more to operate than the income it generates, most shareholders will want to cut their losses and walk away from the corporation.Â This is not as easy at it seems, mainly because any assets that the corporation has under its name will have to be sold for the benefit of the corporate creditors first.
At SM Law Group we help our clients by first organizing the liquidation of assets (if any) that the corporation may have.Â We can then guide the corporation in terms of how any of its assets should be spent and which creditors should be paid prior to the filing of a bankruptcy.Â This strategy is in place to make sure that the shareholders do not accidentally or unintentionally loot the corporation (in other words, selling off corporate assets for the benefit of anyone but the corporation’s creditors).Â We have helped hundreds of small business and corporations through insolvency and bankruptcy.Â It is often a difficult choice for any business owner to walk away from a business that they’ve put so much time and money into. Â However the business owner needs to realize that once the business becomes unprofitable it is simply a matter of time before they have to throw away good money after bad.Â At SM Law Group, we can help our clients through this difficult time to make the right decisions and make sure the process is completed as smoothly and stress free as possible.Â We offer a variety of strategies and solutions for a business going through insolvency.
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