With the economic downturn facing most businesses due to Covid-19, many have had to fold up, operate at half capacity, and others have had no option other than to file for bankruptcy. If you are part of the latter, do not panic, you can still turn your business around. When navigated properly with professionals such as WyoLaw Law Firm, it could be a minor wobble that will launch your business to greater heights. Here is how to turn your business around from bankruptcy.
Identify the root cause
When a business begins to lose money, it may take some time before it is perceptible. But as soon as you notice, you should start to identify the cause in earnest if you are to salvage the situation successfully. So, start by analyzing the issues your business has been facing. If you can overturn the problem by the next quarter, then you are safe. However, if your company has not made any profits for quite some time, you should consider if you can reverse the root cause.
Evaluate your debts
With no profits coming in, you will begin to accrue debts. Before filing for bankruptcy, you should calculate your total debts and see if your current assets can offset them. Remember to be very meticulous; check all records and revisit all paper trails to know your total debt. When you have the total amount of the debt you owe, you can now try to balance them with your assets. If the assets can offset the debts, then you are fine, but if not, then you have to resort to bankruptcy.
Seek legal help
The bankruptcy process is quite demanding, and the best way to go about it is to seek legal help early on. There are several forms of bankruptcy, and knowing which one best suits your situation will be in your best interest. Some forms of bankruptcy may limit your liability to certain debts but will cause your business’s liquidation to offset your debts. If you intend to keep your business running, getting professional help is the best course of action. Get bankruptcy advice from experts to help you navigate the whole process and save your business.
Schedule a repayment plan
The repayment process is a crucial aspect of the bankruptcy process. That’s why you will be required to attend compulsory credit counselling classes at the end of which you will have to sign some forms. After that, you have to work with your creditors to schedule a repayment plan. Once both parties agree on a repayment plan and a judge has confirmed your bankruptcy, then you should be back on track to secure the future of your company.
Bankruptcy might look bad for a business, but it is not the end of the world. If you have a strong will and your passion remains unperturbed, you can definitely turn things around. The most important things are to get your financials right and seek professional help from the start. With these two things sorted, you should not have difficulty getting your business back on its feet.