Warning Signs of Imminent Bankruptcy

The current COVID-19 pandemic shook the world on its discovery, causing widespread panic and fear to clutch the hearts of many. Countries barred foreigners from entering, hospital beds filled up faster than ever, and businesses all over the world started closing. The majority of small businesses, in particular, bore the brunt and were not able to cope with the world’s first major economic downturn in years. With businesses declaring bankruptcy left and right, we are here to help you identify the warning signs of imminent bankruptcy so you know when to seek help from a bankruptcy lawyer in Baltimore, Maryland.

Owning a business comes with financial responsibilities that can be harder to fulfill the closer you are to filing bankruptcy. It is often during these times that people become in denial of what is to come. But if you look at bankruptcy as a way of offering relief from your financial burden, then it will become easier for you to go through with the process and start anew. The next step now is in hiring the right bankruptcy lawyer in Baltimore, Maryland because you will need all the help you can get.

Before you decide to file for bankruptcy, take a look at some of the signs that your business is about to go bankrupt so you can prepare yourself for the decision you are about to make. 

  • A consistent decrease in cash flow
  • Low capital balance
  • Key management employees are resigning
  • Inability to pay loans and make lease payments
  • Difficulty meeting payroll
  • Interest rates on credit cards are increasing due to late payments
  • Creditors are calling left and right
  • You are considering putting more personal money into your business to satisfy debts or payroll
  • You only have enough money for living expenses
  • Credit card balances are increasing
  • You have reached maximum credit card limits 
  • You are using credit cards to pay off other credit card debts
  • You are facing a foreclosure or a repossession
  • Your creditors are refusing to reach settlements

Although these are some of the most obvious signs of imminent bankruptcy, you should also rely on your instinct and consider your emotional health. If you feel tired of getting harassed by creditors and you are already losing sleep over financial obligations you can no longer keep, you should think about filing for bankruptcy to get relief from your debts. Remember that it is not uncommon for businesses to hit bumps and other obstacles down the road. But if you are already sacrificing too much to keep your business afloat, it’s time to consider other options. 

Once you do decide to file for bankruptcy, hire Atty. Richard Hackerman to help you through the process. Atty. Richard Hackerman is a Baltimore-based bankruptcy lawyer who is ready to help you through your bankruptcy process. Whether you need to file for Chapter 7 or Chapter 13 bankruptcy, he can help you with your case. You may contact us through any of these numbers: 410-243-8800 or 888-243-5500. For more information on our services, feel free to browse through our website.

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