The dream of starting or running a business is a big part of being in America. The nation, after all, has a history of being built on big risks that either paid off or did not. But if an enterprise becomes so logged with debt that it is time to sell off parts of it, there is often just as much work to do as there was when business was booming.
A recent bankruptcy filing by an interior design firm in a Connecticut district court has turned up a list of creditors numbering more than a thousand. The filing disclosed that the company estimated between $10 million and $50 million of debt while accounting for less than $10 million in assets.
Declarations of available assets are very important when it comes to bankruptcy filings. Trustees must know the value and type of assets that he or she will be responsible for selling off, and the total value can help judges and courts work out if bankruptcy is an option, as well as which type if it applies.
Industry insiders have known the company was for sale for more than a year, but no one seemed willing to operate under the current structure or reorganize it for new markets. The showroom-based model that the company used has also become less tenable in the era of online commerce.
If bankruptcy is the only way for your business to settle debts, consider the help of an attorney. Legal representation may be very useful when making an initial filing or considering the details for disclosures or bankruptcy court appearances.