This is the final post in a series of articles discussing small business bankruptcies in Olympia or Tacoma, Washington. Small businesses are an essential part of Washington’s economy. When a company struggles financially, small business owners may be forced to consider bankruptcy to stay afloat. The goal of this series has been to provide information about the bankruptcy process and the options available to business owners. Business bankruptcy can be a complicated process. It is imperative to consult with an experienced attorney to understand how bankruptcy may impact your company and personal finances. If you need assistance, contact our office today to speak with an Olympia lawyer.
We discussed the following topics throughout this series:
- Restructuring a small business through Chapter 11 bankruptcy
- The effect of business bankruptcy on personal guarantees and owner finances
- The Chapter 11 process
- Alternatives to Chapter 11 bankruptcy
When faced with financial hardship, bankruptcy may provide a business with much-needed relief from creditors. It is important to understand which options may be available and how they may benefit one’s small business. First, for some companies, Chapter 11 bankruptcy may be a preferable choice. The Chapter 11 process allows businesses to continue to operate while restructuring their debt through negotiations with creditors. Second, many small business owners are required to personally guarantee the financial obligations of the company. Owners may be forced to consider filing an individual bankruptcy to protect their personal assets, such as their home and vehicles. Third, the Chapter 11 process can be complicated and expensive. Pursuant to recent developments in the bankruptcy code, however, certain small businesses may be eligible for a streamlined Chapter 11 process. The simplified process may make this option more accessible and affordable for small businesses. Finally, depending upon the type of business entity and size of the company seeking bankruptcy protection, Chapter 11 may not be a company’s only option. Chapter 7 or 13 bankruptcy, credit counseling, or refinancing options may be more appropriate depending on a variety of factors. An experienced bankruptcy attorney can help explain the various types of bankruptcy and the impact each will have on your business and personal finances.
If you need assistance with a small business bankruptcy matter, contact our office today to speak with an Olympia attorney. The firm also services the Thurston County cities of Lacey, Tumwater, and Yelm, the Pierce County cities of Tacoma, Puyallup, and Lakewood, the Lewis County cities of Centralia, and Chehalis, the King County cities of Seattle, Auburn, Bellevue, Burien, and Federal Way, as well as other areas in Washington, including Grays Harbor, Mason, Cowlitz, and Pacific Counties.