It can be exciting to start a business. The possibilities can seem limitless and the earnings potential may be astounding. Still, most businesses hit a rough patch at one time or another, and sometimes the financial challenges can be too much to handle. Creditors may start harassing a business owner looking for payment, and a business owner’s financial future can hang in the balance. Wisconsin business owners who find themselves in this position should take solace in knowing that they are not alone, and that they can be proactive about protecting their financial future.
For an example, one need simply look at the recent bankruptcy filing of MidAir USA. This company, known for maintaining large commercial aircraft, recently filed for Chapter 7 bankruptcy, stating that it had assets in the range of $1 million to $10 million, and debts in the same amount. A Melbourne airport official, where the company was leasing a hangar for its work, reported that the company was two months behind on rent which, at a whopping $35,395 per month, is no small thing.
However, by seeking Chapter 7 bankruptcy protection, this business can stop creditor harassment and focus on liquidation of assets. By selling its assets, the company can then pay off its debts and any outstanding amounts left over may be forgiven. This, in turn, frees the business owner from crushing debt, which can bring a massive sigh of relief.
But does filing for Chapter 7 bankruptcy mean that one’s business life is over? Of course not. Under Chapter 7, the business itself typically will have to dissolve, but the business owner could still move on to other endeavors. Sure, securing financing might be more difficult, but at least a business owner in this situation will be free of financial challenges, allowing him or her to explore all options available to him or her. In these trying times, though, it may be best to discuss the matter with a bankruptcy attorney who can help create a bankruptcy plan that works to protect the interests in play.
Source: Florida Today, “MidAir USA files for bankruptcy, is late on Melbourne rent,” Wayne T. Price, Sept. 25, 2015