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When should I consider bankruptcy for my Florida business?

Pursuing a bankruptcy filing is a major decision for a Florida business owner. It is not one that should be made lightly or without thoughtful consideration. When a business owner chooses to go down the bankruptcy path, it should be a decision that he or she is making with guidance and the support of professionals who can help facilitate the process.

A business owner who is experiencing problems with short-term cash flow may think that bankruptcy is his or her best option. It certainly may be, but there may be other alternatives as well. A business owner will likely not want to enter into bankruptcy without thorough consultation with an experienced attorney who can help the business owner determine whether bankruptcy is an appropriate mechanism through which to relieve his or her debt burden.

Before filing for bankruptcy, a business owner will likely want to reduce his or her business costs, though such cost reduction measures ought to be pursued strategically. It can be disadvantageous to reduce certain costs if those reductions will also reduce a business's small profit margin. It may be appropriate to pursue strategic liquidation of assets for some businesses, but, again, a business owner will not want to do this haphazardly.

Business owners must meet specific requirements before filing bankruptcy, and an attorney can help a business owner to determine whether business bankruptcy is reasonable and realistic for his or her situation. There are many strategies through which a struggling business can find methods by which to revitalize. If you are a business owner and are considering bankruptcy, it may behoove you to seek the counsel of an attorney before making any significant business decisions.

Source: "Avoiding Bankruptcy: How Your Business Can Survive a Financial Crisis", Laura Cole, accessed Oct. 2, 2015

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