Are there any alternatives to bankruptcy?
There are definitely alternatives to bankruptcy. I generally try to recommend those alternatives before recommending that a client file for bankruptcy. One of the options that business owners have is the opportunity to enter into workout agreements with their creditors. Another type of option that a business client may have is what we call an assignment for the benefit of creditors. It’s somewhat of a more complex legal theory, however it is, and oftentimes, a much more manageable and consistent option for a business owner who’s considering the possibility of filing.
In addition, I would always simply just recommend that any business owner who is considering filing for bankruptcy or considering the need to do something about their debt, sit down with their attorney to find out what options are available.
In the end, as I always say, there isn’t any one right answer, it’s a specific answer tailored to that company.See all videos