The importance of preparing for a business bankruptcy filing cannot be over emphasized. From utilities, to critical vendors, to rights of suppliers to reclaim goods shipped, timing is everything. While most people associate the remedy of Bankruptcy with cash flow crisis or borrowing base problems, the fact is that Bankruptcy affects every single contract.
Moreover, proper roll out of the bankruptcy announcement can make all of the difference in the success or failure. Few businesses survive just on their existing contracts, which, under Bankruptcy cannot be declared in breach merely because of a Bankruptcy filing (despite the plain terms of any written contract). Most businesses need the “next order” in order to stay alive.
Care must be taken in regard to all aspects of a business when filing and, so, Bankruptcy should never be the last resort or the last thought.
Bankruptcy is a tool granted to all businesses by Congress. It has been around for hundreds of years and it is our chief defense against waste. Think early, consult soon, plan effectively.
This article is written by an attorney at Attorney Donald Wyatt PC. Always consult an attorney before making any legal decisions. To make an appointment today, please click here to contact us.