The only way to save my company would be to file for Chapter 13 bankruptcy.
Well my company was expanded so fast and we did not have enough resources to keep up with the demand.
Chapter 13? You are telling me there are different types of bankruptcy?
Is there a difference between them?
Yes. There are two main types for businesses. Businesses have the option for filing for Chapter 7 or Chapter 13.
Chapter 7 is for liquidation, while Chapter 13 is for an extended payment plan.
So falling behind on bill payments can lead to mass amounts of debts and a last resort solution is bankruptcy?
Bankruptcy should definitely be a last resort. If you have any capability to pay off the debts without filling that is better. The best thing to do is always be smart with your money. Don't buy what you cant afford if you don't need it. Credit is good only if you can manage it well.
Bankruptcy is not all bad is it?
No it is not. I filled for Chapter 13 because I want to keep my sneaker company, because I have invested so much time and resources into it. Bankruptcy is giving me a second chance. This time I just need to be more responsible with my money.