It looked like a great business plan. Four long time bowling friends were going to open the bowling center of their dreams. Two of the partners had owned a bowling pro shop together selling bowling balls and shoes to the area bowlers for the last 12 years. One of the partners had owned smaller bowling centers in the past. The fourth partner was the major investor and he was excited about the plan to open a combination bowling center, go-cart, sand volleyball venue. The biggest the area had ever seen.
The plan looked so good on paper that several friends in their bowling league were envious of the opportunity the four partners had. That envy, however, did not last long. A short 10 months after the center’s grand opening, problems were already occurring. The initial partnership of four was already down to three after some major finance issues. Many predicted that it would only be a matter of months before the entire group was filing for a business bankruptcy.
In 1980, businesses accounted for 13% of bankruptcies. Today, they account for about 3%. If you, however, happen to be one of the 3% who have a failed business, it is important that you find the best attorney to advice you in the business bankruptcy process.
One of the first things a business bankruptcy attorney will help you decide is what kind of bankruptcy you should file. In some cases, an attorney might suggest a Chapter 7 filing, providing for liquidation. This would include the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors. With an attorney, the success rate for Chapter 7 bankruptcy claims is over 95%. An average Chapter 7 case can cost anywhere from $1,500 to $3,000.
If you fear that your business may be filing bankruptcy in the near future, the best course of action you can take is to contact an attorney for advice. Do not let a bad situation get worse because you did not seek legal counsel.