Being unable to pay your creditors is very disappointing and it can lead to the closure of your business.
However, do not worry because even the law recognizes that such things are bound to happen and it makes provisions for what is supposed to follow once this happens.
The first thing that you need to understand is what insolvency implies.
Since it is a legal state of affairs, you need to decide whether you are going to file for insolvency for your business, or you are going to wait till your creditors have sued you.
Either way, you will be faced with both advantages and disadvantages.
Voluntary bankruptcy gives you a chance to review other options available for you to settle the debts out of the courtroom.
In addition, it gives you the allowance to learn all you can in regard to the proceedings and the requirements that will follow.
Did I mention that you also have the time to yourself to look for the best lawyer and negotiate on the charges? Involuntary bankruptcy on the other hand may upset you and your finances further.
It does not give you time to prepare for the worst.
However, you can file for a petition to stop the case from going on, but this means more fees for hiring a lawyer.
You need to be smart and you need to have convincing reasons as to why you want to block the creditors' petitions.
With the correct information and proper knowledge of the law, you can have it work for you.