The Ugly Truth about Business Bankruptcy

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Too many business owners believe as long as they avoid business bankruptcy they won’t have to worry about the health or reputation of their credit. They believe as long they restructure their debt they won’t suffer any of the negative side effects of their poor financial history. Unfortunately, this isn’t the case. The ugly truth about business bankruptcy is the fact it’s nothing more than the end result of a long line of actions which have already devalued your business’ credit.

Should you avoid business bankruptcy? Absolutely. A business which has gone bankrupt looks even worse than a business which merely fell into delinquency. But there’s nothing attractive about a business which fell into delinquency. The moment you are seriously considering credit restructuring it’s likely already too late to keep your credit looking good.

That’s the bad news. The good news is you can minimize the damage to your credit and make sure your suppliers will continue to work with you after you return to solvency if you work with the right professional representation. Hiring representation to negotiate with your creditors will help you arrive at a mutually beneficial restructuring plan, keeping your business operational and providing them with revenue they weren’t previously receiving. When you hire on an outside negotiating team you will also improve your relationship with both your creditors and your suppliers.

Regardless of whether you file bankruptcy or not, if you need to restructure your debt than your credit already sits in bad standing. The first step to rebuilding your credit is restructuring then repaying your debt.