{"id":4400,"date":"2016-04-04T10:47:30","date_gmt":"2016-04-04T15:47:30","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-debt-and-bankruptcy\/ten-things-to-think-about-before-filing-for-bankruptcy.html"},"modified":"2026-04-01T01:15:00","modified_gmt":"2026-04-01T06:15:00","slug":"ten-things-to-think-about-before-filing-for-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-debt-and-bankruptcy\/ten-things-to-think-about-before-filing-for-bankruptcy.html","title":{"rendered":"Ten Things to Think About Before Filing for Bankruptcy"},"content":{"rendered":"\n
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Ten Things to Think About Before Filing for Bankruptcy<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Jordan Walker, J.D.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Business bankruptcy<\/span> is the legal process where a company petitions a bankruptcy court<\/span> for protection from overwhelming debt<\/span> and financial obligations<\/span>. Bankruptcy can allow a company to liquidate<\/span> its assets or reorganize while continuing operations. While it offers small <\/span>business<\/span> owners<\/span> a fresh start<\/span>, there are many things to consider before filing for bankruptcy.<\/em><\/strong><\/p>\n\n <\/div>\n\n\n\n

If your business is struggling with staggering debt, and you can\u2019t meet your financial obligations<\/span>, bankruptcy may be your only option. Through bankruptcy, you may be able to eliminate all or some of your business\u2019s debt load and figure out how to handle creditors.<\/p>\n

A bankruptcy attorney<\/span> can advise you on debt relief<\/span> options \u2014 including Chapter 7 debt discharge<\/span> plans, Chapter 13 debt <\/span>repayment<\/span> plans<\/span>, and Chapter 11 reorganization. An attorney can also give you peace of mind, something that you can\u2019t put a price tag on. \u00a0<\/p>\n

What Is Business Bankruptcy<\/span>?<\/h2>\n

When a business owner<\/span> realizes their small business<\/span> has overwhelming debt<\/span> and may not meet their financial obligations<\/span>, they may consider their bankruptcy options<\/span>. Business bankruptcy<\/span> is a legal process where a business files a petition with a bankruptcy court<\/span> to get an automatic stay<\/span> from business debt<\/span> collections. There are two different options under bankruptcy law<\/span>:<\/p>\n