The best part about bankruptcy is this: If your nonexempt assets are less than your debts, you don't pay everything you owe and you get a fresh start. Seek suggestion from authorities, read the literature on the topic, and most importantly come to terms with the company declining. Remember, both your broker and legal counsellor do not have much to lose if your side leaves something on the table. Petitioning for chapter 11 bankruptcy is a tough decision when you're trying to preserve your company. Deciding on your threats (If you don't give me, I'll .) * You are ready to cash out and enjoy the cash that you earned from your sweat equity in the company.

Furthermore, your bank officer may want an independent audit of your inventory and balances due values. As a result, you must start on this now, consequently you do not have to scramble when you engage a broker or your purchaser's team does due diligence work in your office. Let them know that over the next four weeks, you will ask your personnel their opinions on what has gone wrong and how to repair the company. A wise entrepreneur knows when their business won't persist and takes proper actions to close business and begin anew somewhere else. This allows him or her to create alternate career road maps. It is always preferable to start the petitioning yourself. * What are we doing well and what should we keep doing? Also, your banker may want an independent audit of your inventory and accounts receivable values. From your informational interviews, you have likely discovered low enterprise morale.