How to Avoid Bankruptcy

By February 16, 2018 July 30th, 2019 No Comments
a table with different reports and tools
Avoiding bankruptcy takes more than just paying your debts. There are several steps you can take early on to prevent it from happening. Keep your company and yourself protected and take precautions – it will save you a headache.

Banking and Record KeepingGood banking and record keeping is the key to preventing bankruptcy.  As a company owner or an individual, you should have access to your economic information at any time. Also, you should always know who you owe, how much you owe, and when the payment is due. Monitoring cash flow and managing payments can prevent debts from piling up.

Filing Taxes

You should always file state, local, and federal taxes on time. Even if you cannot afford to pay what you owe, you still need to file the returns. Once you file, you can work out a payment plan for the taxes as necessary. If you do not file, you get charged failure to file penalties, and these penalties are expensive. Bankruptcy can be a solution to paying off tax debts.

Making an Employee Manual

Although making an employee manual can be costly and often requires a lawyer, it will be worth it in the end. Issues can arise because employees were given no guidelines and as a result have unrealistic expectations. Instead of going bankrupt to solve these problems, prevent the issues from occurring altogether.

Even with these rules, bankruptcy cannot always be avoided. Consult a lawyer to decide the best course of action for you and your company.

At Aiken Schenk, we have a dedicated team of bankruptcy attorneys. Heather Macre and Philip Rupprecht have the experience and knowledge to get you the help you need. Let Aiken Schenk help you take the next steps toward relieving your financial stress.

Our blog posts contain general information about legal issues and developments in the law. Our posts, however insightful, do not constitute legal advice. Yes, we’re pretty awesome attorneys, but we’re not your attorneys (yet) and just reading our blog posts does not create an attorney-client relationship. You should consult with an attorney licensed in your jurisdiction (not our clever blogs) for advice on specific legal issues.