The answer to this question is very case specific. There are many factors that go into deciding whether a bankruptcy is the best option, both for a person or for a business. These could include:
- How much debt is there?
- How old is that debt?
- Is that debt in default (like missed payments)?
- How far into the collection process is the debt or has a lawsuit been filed?
- How aggressive is that creditor?
- What sort of assets are available to pay or be seized?
- How collectible is the business?
- Are you a personal guarantor for the debt?
- If you are, how collectible are you?
- What is your personal tolerance for risk?
- What is your personal tolerance for the collection process (letters, calls, etc)?
All of these factors and more will go into our recommendation for what we feel is the best option. In addition, you will have several personal factors that will ultimately decide what path you feel is best.
For a full picture of the legal factors that go into your situation, please feel free to contact us at Russell, Tighe & Alexander PC for a free consultation!