Lessons from Donald Trump: How Bankruptcy Can Save Your Business
If your business is facing financial trouble, you might be worried about the future of the business, as well as your own personal future. Many people fight hard to avoid bankruptcy, thinking that it will mean the end of their business and their livelihood. The fact is, however, that bankruptcy can actually save your business and improve your financial position in the long run. Many businesses have faced the same situation and have emerged stronger. Learn more about how business or corporate bankruptcy in Southfield may not be the end of your future at all.
Whenever thinking about business bankruptcy, one person comes to mind – Donald Trump. Whether you like him or not, there is no denying that he has been extremely successful in business and finance over the years, yet his companies have gone through bankruptcy four times (1991, 1992, 2004, and 2009). This should help you to look at the bankruptcy process a little differently.
Protection for Your Business
While the term bankruptcy certainly has some negative emotions attached to it, the reality is that it is just a legal process like any other. It provides your company with protection while it is going through restructuring or other changes to (hopefully) allow it to emerge stronger than ever. Everything about the bankruptcy process is written into the laws of the US and the states that you are operating in, so there is nothing nefarious about filing.
Not Ripping Off the Lenders
Another misconception that many people have is that if you file for bankruptcy, you are somehow cheating the lenders out of their money. While it is true they will often end up losing some money (or at least not profiting as much as they had hoped), it is not cheating them. They know the laws related to bankruptcy better than anyone, and they factor this risk into their business. This risk is why they charge interest, and while bankruptcy should only be used when it is needed, the process is actually preferable to liquidation or going out of business in the eyes of the lenders.
Emerging Stronger Than Ever
The list of companies, both big and small, that have gone through bankruptcy over the years is almost endless. Sometimes the bankruptcy is required because of bad business dealings, other times it is caused by circumstances outside of the control of the business. Whatever the case, bankruptcy can give your company the legal structure it needs to get through difficult times and ready to move forward into a successful future.
If your company is struggling, the best thing you can do is reach out to us to speak with a business or corporate bankruptcy attorney in Southfield. We’ll let you know if your situation could benefit from a bankruptcy or not. If it could, we’ll help you through the process so the business can get back on its feet and become successful once again.