When a business is facing overwhelming debt and other major financial issues, a big decision comes before the owner. This is the decision of whether to try to keep the company up and running or bring the business to an end.
No entrepreneur wants to see a business he or she invested time and effort into fail. However, sometimes, an owner letting his or her company come to an end is what would be best for his or her long-term interests.
There are a variety of things that could lead to the owner of a small business that is facing difficulties deciding that he or she would be best off letting his or her company close rather than continuing to struggle to keep it afloat. This includes he or she determining that:
- The business is keeping him or her from being the person he or she wants to be
- Keeping the company operational is no longer consistent with his or her overall personal and professional goals
- The business’ problems have reached the point where they are simply too much to handle
- The company’s financial issues are so great that they would not be able to be fixed by reorganization or restructuring
When the owner of a financially struggling business comes to the conclusion that the time has come to shutter the business and move on, what tools they use for bringing the company to an end matters greatly. It can affect how the shutting-down process goes and what impacts it has. In some cases, small business owners find Chapter 7 bankruptcy to be a helpful tool on this front. Skilled bankruptcy attorneys can advise business owners who have opted to shut down their company on whether filing for a Chapter 7 small business bankruptcy would be likely to help with their goals.