Bounce Back from Business Bankruptcy

The process of turning a company around after going through a bankruptcy can be daunting, even when the necessary changes are not complicated in themselves. It's important to remember that bankruptcy

Personal integrity is crucial. In smaller companies, where startup money may have come from family or friends, business owners must communicate honestly and often with those who provided funding. Not only do investors deserve to know what's up, but they may have some good ideas for reorganization.

Timing is also important: you should try to file for bankruptcy before creditors take your business to court. Once you file for Chapter 11, your business will have court protection and creditors will be kept at bay, allowing you time (typically 120 days by court order) to come up with a reorganization plan. The plan will need to be agreed upon by all creditors. If you fail to present a reorganization plan within the permissible time period, creditors can propose their own plan.