When your business experiences financial difficulties, navigating the complexity of small business bankruptcy can be frustrating and overwhelming. However, with the help of an experienced Licensed Insolvency Trustee, you can better understand your options and take steps toward financial security.
Here are some options to consider when contemplating small business bankruptcy:
- Consider an Arrangement: Before pursuing formal small business bankruptcy proceedings, it might be possible to reach an informal agreement with your creditors. This could include renegotiating payment conditions, settling debts for less than full value, or restructuring existing obligations.
- Proposal to Creditors: Under the Bankruptcy and Insolvency Act (BIA), you can make a formal proposal to creditors to restructure obligations without declaring bankruptcy. As a Licensed Insolvency Trustee, we can assist in preparing and filing a proposal, which often describes a strategy for repaying creditors over time or settling debts for a lower sum.
- Bankruptcy Assignment: If the options above do not work, our team will assist with filing for small business bankruptcy. As we move through each step of the process, we’ll offer support and guidance to ensure you fully understand the proceedings.
- Debt Consolidation and Counselling: For small businesses that are experiencing financial difficulties but are not yet insolvent, debt consolidation or credit counselling services may be beneficial. These programs help to consolidate debts into more manageable payments while also providing financial education and budgeting skills to enhance cash flow and lessen reliance on credit.
Each of these options has advantages and disadvantages, as well as legal concerns. If you’re concerned about the financial health of your business and wonder if small business bankruptcy is the right choice, contact our team today.