CreditCardsAct

In such a difficult economic situation it’s very important to save your company, stay out of bankruptcy court. We hope that our advices will help you temporarily or permanently.

1. Cut Your Expenses

If you have realized you don’t have enough money to pay the bills you may want to slow your cash flow problems.  The best way to do this – is to cut your expenses. Surely pay those bills that you should pay now, such as overhead and taxes. Pay them and negotiate other expenses with your creditors. Until your financial situation is under control try to get them to extend your terms. They would better work with you, than caught up in bankruptcy court.

2. Analyze Your Bank Accounts

If you have your bank account at a bank and owe money to the same bank you should know that your bank account can be raided by bank to pay your bill. But another typical business practice is to use more than one bank. You may have two business accounts; one of them – at the bank where you have your loans. An account there can serve as a compensating balance. Money other than the amount required for the compensating balance should be kept at the other bank.

3. Pay Your Payroll Taxes

It’s very important your payroll taxes to be paid on time and in full. Even if your business is a corporation or partnership you personally can be held by the Internal Revenue Service (IRS) liable for the taxes withheld from your employees’ paychecks. Any unpaid payroll taxes will be assessed by them. This particular debt will not be discharged even if you take business bankruptcy.

4. Don’t Hide Your Assets

Some business owners, that fear bankruptcy, give their personal assets to family or friends to hide it.  You shouldn’t do this. In case you end up in bankruptcy court, they will discover these assets and you will be accused and convicted of fraud. The bankruptcy court’s job is to protect from creditors some of your assets.

5. Fully Disclose Your Financial Situation

Fully disclose your financial situation to your lending institution trying to borrow money to consolidate your debts. You could be accused of fraud if you don’t do this.