If you are in business with a partner and your finances aren't in good shape, and the two of you are going to lose everything, it's time to talk with a business bankruptcy attorney. You want to get control of everything before it's too late, and the application process for bankruptcy can be a long road. There are a lot of things you will have to do before you get ready to see your lawyer. Make sure that you do the following things before you appointment to help move things along.
Past Years Tax Return
Try to get your tax returns for the past 3 years or longer if the lawyer requests it, from your book keeper. This way the lawyer can go through everything that you claimed as a profit, as expenses, and they have all of your financial information that was filed with the government. If you have only been in business a year or two, you want them both.
Current Assets and Money in Accounts
The lawyer will have to see if you have enough money in your accounts to pay off the debts that are sinking your business, or if you have enough assets to sell to cover the debts if you were to close the business down. This is going to weigh in greatly when you fill out your application and they determine if you qualify for bankruptcy or not.
The lawyer will look at the amount of debts you have, compared to your running costs and profits. If the debts you have could never be paid off, or couldn't be paid off so you could still make enough profit to survive, then you want to think about filing for bankruptcy. Have your lawyer look at the dates and get up to date statements so you know exactly what you owe when you go in there.
If there is any way that you could possibly pay off your debts, then you aren't going to get approved for bankruptcy. Talk with your lawyer, and with your partner, to see if you can find a debt solution plan, or to see if bankruptcy will be your only way out. Lawyer specialize in the paperwork process and will go to court with you when you are ready to get a judgement, so make sure you choose a great business bankruptcy attorney that can help increase the chances of winning your case.Share