The Pros And Cons Of Opening A New Business

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Opening a new business is one of the most exciting times of anyone’s life. The initial stages are full of questions you’re excited to answer and decisions you can’t wait to make. For some, this excitement continues as the business grows and the opportunity to succeed becomes more solid with every new day. For others, the questions get more difficult and those decisions they used to wake up in the morning so excited to make start to get postponed and pushed off because the choices all seem horrible. For a few, the biggest questions and the decisions with the most lasting effect on both their professional and personal life come when they are attempting to figure out how to get out from underneath all the company debt that is left when the decisions …show more content…
Many attempt to alleviate the weight of the debt by selling company owned equipment and using the proceeds to pay down their balances. If doing so doesn’t alleviate the debt, business owners will have a new decision to make: should they file for bankruptcy or try to cover the deficit with personal funds?

When attempting to decide whether or not to file for bankruptcy, the answer is almost always the same. Only file for bankruptcy if it is absolutely necessary. In the best-case scenario, you will be able to figure out a way to close the company and cover the company debt without the bankruptcy filing. Some look at bankruptcy at this point and see it as a smooth sailing version of shutting down the business. Anyone who has filed for bankruptcy or who is experienced in the industry will advise you, this is not an accurate description of the
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Check with each creditor; pull your original contractual agreements, etc. In some cases, creditors extend loans to your LLC or Incorporation, but in others they actually extended the credit to you personally. This is an extremely important distinction to determine. If you did NOT personally guarantee the debt, the creditor cannot legally go after you personally for the debt. They’ll only have the right to go after the business. If the business operations cease, the lender cannot collect from you personally simply as a backup. You were not listed as a guarantee of the

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