Business bankruptcy often brings about ideas of disappointment and failure. While it is true that filing for business bankruptcy is not pleasant, business bankruptcy filings actually can present some advantages to a business that realizes they have fallen on hard times and have more bills pending than they can possibly pay.

Under business bankruptcy guidelines, you can take advantage of the opportunity to start over and gain a fresh start. There are fees associated with business bankruptcy filings, but compared to the cost of outstanding bills, those fees can be negligible. The most important thing that should be kept in mind when considering business bankruptcy filings, is that you will need to carefully evaluate your assets as well as your liabilities and plan ahead in order to take advantage of the opportunities allowed under business bankruptcy law.

You will also need to make sure that you select the right form of business bankruptcy when you plan to file your bankruptcy case. There have been new restrictions set in place that limit the ability to file for Chapter 7, depending upon your income and the amount of disposable income that is left remaining once expenses are subtracted. That said, this certainly does not mean that businesses are completely prohibited from filing for Chapter 7. The best way to find out if you qualify to file for Chapter 7 is to consult a business bankruptcy attorney who is experienced in handling Chapter 7 business bankruptcy filings. He or she will be able to analyze your income and your means, or disposable income, to determine whether you meet the guidelines for Chapter 7 business bankruptcy filings.

Your attorney will also be able to help you prepare all of the forms that are required for business bankruptcy filings. When you meet with your attorney you should be prepared to provide information regarding your creditors and the amount of money that you owe to each. You should also have information prepared regarding your current income and your list of assets as well.

If you and your attorney determine that Chapter 7 will not work given your current situation, then you may find that Chapter 11 is a better fit for your circumstances. Remember that there are also advantages associated with Chapter 11, even though it will not ‘wipe out’ your debt the way that Chapter 7 is commonly believed to work. One of the primary advantages to Chapter 11 business bankruptcy filings is that it presents the opportunity for you to restructure your company. Such restructuring can be vital to surviving difficult economic times or a change in your industry.

Regardless of whether you ultimately file for Chapter 7 or Chapter 11, business bankruptcy filings present a welcome opportunity to handle the repayment of your debts and relieve the pressure that is often associated with a business’ failure to thrive. Consulting an attorney as quickly as possible regarding possible business bankruptcy filings can expedite the process as well as the stress relief.

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