Before you file for bankruptcy, consider this alternative.

What was anticipated has occurred, this Christmas season, the valuable fourth quarter,  was a disaster, on the average retail sales were down 5-8%, however that is an average, many did lots worse some did better. In consideration that for many businesses the fourth quarter represents 40-50% of annualized gross revenue, this was a disaster.

Many small businesses are drowning under excessive debt worsened by diminished revenue and will not be able to continue without some form of relief, thus they contemplate bankruptcy.

THERE IS AN OPTION.

A well orchestrated debt workout program, which can preserve your assets and rid you of most of your debt, leaving you in control of your destiny and the results, as oppoed to a liquidating court ordered receiver who earns off your demise and liquidation.

There is no reason secured debt cannot be reduced to  minimal paybacks, and unsecured debt eliminated completely. Personal guarantees can also be reduced to nominal payments in exchange for a release and even unpaid payroll taxes and SBA guaranteed loans in default can be reduced to small affordable loses paid over time and thus affordable.

The business can be preserved, although re-organized, and you can get the second chance you need and deserve.

In view of declining real estate values you are better off entering into a workout negotiation with the mortgagor, your lender, then going into bankruptcy which may preserve your home but also preserves your debt, postponing the inevitable, liquidation, for a brief time period, but ultimately you are likely to lose it as the debt is simply too high to afford and more then the house may be worth.

The issue is the excessive debt and it must be significantly reduced or eliminated, not adjusted or modified. Interest only is meaningless, even a reduced interest rate is ineffective as the debt is the killer and unless it is reduced dramatically there is no real relief available.

The real point is, that under our legal system, in which the banks and creditors are completely protected the only option is a bankruptcy which is also controlled by the same legal system and always results in a win for the secured creditors and a loss for the borrower. If the battle front is moved to a business negotiation, a workout strategy, the results can be stunning…for the defaulting borrower.

The point is, if your core business is viable, can operate profitably without the debt, then you must evaluate this option, it could be your salvation, as it delivers the second chance you truly want, by reducing the debt.

Call me, I would be delighted to discuss this option with you.

Call Norm at 413-584-2581, he will arrange a no obligation teleconference during which we can evaluate your options.