Personal Injury Attorney
Starting a small business is an incredible undertaking. Not only will you find yourself dependent upon yourself for an income, the success of your small business relies on it. Many find the prospect of a business partnership attractive for a variety of reasons, including:
- To share the workload
- To share the financial expense
- To share ideas
- To play off of each other’s strengths
While there can be several benefits, it’s crucial to develop agreements right from the start carefully. This is essential to ensuring that you have a plan in place for how you will manage should the business face challenges or you and your partner experience a disagreement. Additionally, should one business partner file for bankruptcy, you will both need to know how to manage this, and how it will impact the other person. When facing the prospect of either personal bankruptcy or bankruptcy as a small business partnership, it’s essential to speak with a bankruptcy lawyer for guidance.
Developing Agreements From the Start
You and your business partner must develop agreements right from the start. Having agreements can ensure that you have a clear plan for how you will manage day to day operations in addition to the unexpected. In the absence of agreements, problems can inevitably arise. Working with a lawyer can help to ensure that nothing is left out of a partnership agreement and that you have a plan for how you will manage a bankruptcy or dissolution of the business.
Should one business partner file for personal bankruptcy, it will be important to consider how this filing might impact the business and the other business partner. When two people come together to form a partnership, the last thing they may consider is the debt that the other person may be carrying. Unfortunately, many fail to consider that there could be consequences to this in the event that a partner files for personal bankruptcy. For example, if you are sharing a loan with your business partner, and they file for personal bankruptcy, you could be left responsible for the entire loan, especially if the other party’s debts are discharged.
You May Be Able to Continue Operations
When your partner files for personal bankruptcy, your thoughts may turn to the impact this may have on your business. Be aware that you may be able to continue operating your business. However, it may be in your best interest to speak with a bankruptcy lawyer for the help that you deserve. You may have a few options before you, such as a loan modification, buying out your business partner, or filing for bankruptcy yourself. Chances are, if your business partner is having financial troubles or has not been straightforward with you, you may have concluded that you no longer wish to be in business with them.
If you are in a business partnership, there are a few things that may happen. You and your business partner may choose to file for bankruptcy as a business partnership, or one business partner may want to file individually. Because of this, you must consult with a small business bankruptcy lawyer in New Haven, CT. They can provide you with guidance and help to ensure that you and your business are protected.
Thanks to The Law Offices of Ronald I. Chorches for their insight into bankruptcy law and owning business.