(Video) Business Failure: One Common Cause of Chapter 7 Bankruptcy

Posted by Wesley Scott on July 25, 2018 at 1:50 PM
Wesley Scott

It is the America dream. Quit your miserable job and start out on your own. Stretch and try to reach new heights while having a blast and making gobs of money right? I am not sure there is a person alive who has not had the flicker of running their own business at one point.


I often think of the supposedly dream businesses right? Like bars, restaurants, pizza joints, and maybe a resort? And then I wonder how many times these businesses turn into nightmares. Employing young kids that don’t show up, selling pizza’s at $10.00 a pie, massive overhead, and in the end little to no profit. Does this sound like a dream or a nightmare?

No one starts a business, I guarantee it, hoping that this business is nightmare, and I can’t wait to work 80 hours a week for nothing, have employees steal from me and not show up, and have this sickening realization that the business is not my passion at all, it is a nightmare. No one goes into business thinking this- but it can end up that way.

The fact is the vast majority of business start-ups fail within the first 3 years.  When the dream turns into a nightmare, you will not only be left with a lot of stress but often with an enormous amount of debt too. Personal guarantees on leases, personal guarantees on business loans and often vendor supplies can leave you with little choice but to entertain a Chapter 7 Bankruptcy. This is healthy for the economy why? Because some businesses do succeed and employ people who earn money who use this money to buy other goods and services that employ other people- and so on.

CONCLUSION

When the time is right, or when you are ready, reach out to Minnesota’s nicest bankruptcy law firm at www.kainscott.com. You will be happy you did.

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Topics: Chapter 7 Bankruptcy, Filing Bankruptcy, MN Bankruptcy