Opportunity to Start Afresh
As far as the bankruptcy laws are concerned, they are all in the favor of debtors. Bankruptcy presents you an opportunity to wash out everything that has happened in the past and make a fresh beginning. This is a chance for you to reorganize your financial situation because you are get legal protection from the creditors.
Keep Personal Integrity Intact
However, give foremost importance to one thing while turning around a business after bankruptcy. What is this important point? It is imperative, that you always keep your personal integrity intact. You should not try to hide any facts from the people who have invested their money in your business. This is more important in the case of smaller companies where most of the funds are raised with the help of relatives, friends, and family members. This is not only because the people who have invested deserve to know this information but also because any of them may come up at any time with a really beneficial idea for turning around the business that is on the brink of bankruptcy.
Work Our the Plan within Time Limit
Another important factor while turning around a business after bankruptcy is timing. In most of the cases you get about 120 days from the court after filing for bankruptcy. This means that the law will protect you from the creditors and you can use this period to prepare a reorganization plan for your business. You have to take the consent of all your creditors for implementing a fresh plan. Your inability to come up with a reorganization plan within the stipulated time frame will give the right to your creditors to present their own plans before you.
Take Quick Decisions and Act Fast
Turning around a business after bankruptcy requires quick action from its executives. You have to shortlist two or three good things about your business and build an effective future strategy based on them. The temptation of continuing anything else must be resisted and there should be no hesitation in selling, discontinuing, or outsourcing it. Instead of making the required changes immediately if you still keep on going in the same manner then the consequences may prove drastic.