A business bankruptcy after years of putting in hard work can seem like a failure. Some bankruptcies can actually help the business restructure without continuing to hemorrhage money. If your business has been experiencing issues making enough money to cover all of the debts and provide personal income, bankruptcy may be the next solution. As an owner in the business, it is very different to witness your own company going bankrupt versus experiencing a company that you worked for going through the process. One of the major issues that you may be thinking about is how it will affect your private life. Consider some ways that you can keep your personal life intact when you are filing for a business bankruptcy, such as:
Begin freelancing or consulting to keep income
If you wish to file either a chapter 7 or a chapter 11 business bankruptcy, you will need to get more income coming into your home to remain stable throughout the process. Find consulting contracts in your field or become a freelancer so that you can bring in extra income. This will give you the opportunity to keep up your income without having to dip into your businesses money. If you are filing a chapter 11 to restructure your company and debt, this will give you a new source of income to make it happen.
Consider it another business decision
Your business can start to affect your personal life if you begin to look at the process of bankruptcy as a failure. Instead of thinking that you went bankrupt as a failure, consider bankruptcy a chance to make a change. Go over the past of your company and determine where you made some mistakes or wrong turns. Write down a new plan to make your business solvent and functional in the long-term with these new, key facts. Treat it as you would changing vendors or marketing strategies. Being able to apply hindsight to your new business finances will have you feeling like less a failure and more a seasoned business person.
Come up with a Plan B
A financial plan B is always the best method for professionally and personally surviving a business bankruptcy. If saving your business is not a financial option due to the debt load, you will need to have another plan for your career immediately. Whether it is jumping back into securing investors for a new business or joining another person's company, having a plan of immediate action will give you less anxiety and will not affect your personal life as much.