If you’re a small business, it's easy to understand why you would
want to try and avoid declaring bankruptcy. Your whole life is pretty
much tied up in your business.

While running a small business may be a joy, and the very thing you
have always wanted to do with your life, sometimes economic reality
hits hard. The reality these days is that the overall economy of the
nation is suffering so badly that people have all but stopped buying
things they consider to be a luxury or unnecessary.

If you own a business that caters to people who had disposable
income prior to the recession, you will be feeling the economic pinch
now. Unless your clientele is high end, rich and famous people who
always seem to have money, your business may be in deep trouble. Many
entrepreneurs try to make it against all odds and will juggle payments
madly to keep from going under.

Interestingly, especially these days, is the fact that many banks,
etc., are willing to barter the debt down, particularly if there is
help from a credit counselor. This type of intervention will often make
the difference to the enormous debt small businesses are facing by
reducing it to perhaps as little as a few cents on the dollar.

While the bottom line here is that the bank does not get back its
full initial loan, they are getting some return on the dollar, and this
is a much more equitable solution to both parties rather than the final
knell of bankruptcy. With a bankruptcy, the banks would lose the full
debt owing, thus any return on their initial investment may be a
welcome solution to a difficult situation, thus allowing the business
to continue and the bank to recoup some of their funds.

If this kind of solution does not work because the businessperson
was unable to make the negotiated payments, then all the assets of the
business are sold and the cash is given to the bank(s). There are other
solutions to ride out the worst of the recession, and those include
snagging low rate loans, divesting yourself of expendable assets,
finding an Angel investor, and asking employees if they are willing to
take a pay cut to still have a job.

Patrick Warwick is the lead content contributor for Chicago
bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with
a Chicago bankruptcy lawyer or learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com