I’m Michael Chekian, your certified specialist bankruptcy lawyer, and I’d love to tell you about how I counsel clients who need to exit their small companies which are in financial distress.
The first issue is to determine if the company is perpetually flawed and cannot climb out of the financial hole it’s in. The problem may be the industry is declining, the business model is not working, unexpected debts, unfair lawsuits, or the business owner may be unable or unwilling to put the same energy and creativity into the business.
Assuming the business has few assets and is an entity like a corporation or LLC, the debts need to be sorted out between purely corporate and those where there is personal liability such as guaranteed debts. The latter debts are the only that matter, since the company can be easily dissolved and so a judgment against it may not matter. The people who may owe the debts live on and need to be protected.
If you have more questions about these issues, I welcome your inquiries so click on the links below for a free 15 minute consultation with me, attorney Mike Chekian.