Many married couples in New Mexico are also in business together. In fact, some spouses were business partners long before they decided to become life partners, as well. If you and your spouse own a business together, you’ve likely encountered financial challenges at some point in your journey. If you’re like most business owners, you likely have had a continual ebb and flow of financial ups and downs in your business career.
There are some red flags that should catch your attention as you review your company’s financial standing, which you hopefully do or at least have someone else do for you on a regular basis. Disregarding certain issues can cause what may have been a resolvable financial problem to become a full-blown financial crisis. Thus, prompting a need to explore debt relief options such as Chapter 7 bankruptcy, which is not always the bad thing people think it is.
Financial symptoms that suggest potential crisis
Perhaps you and/or your spouse handle the finances for your business. Then, maybe neither of you are really adept at handling your finances, so you hire someone. Either way, if any of the issues encompassed in the following list should surface, it’s a clear and obvious sign that warrants immediate attention as it may mean that your finances are getting out of hand:
- You and your spouse may encounter challenges with monthly payments in your personal life or business ventures. Any number of issues can catch you off guard making it difficult to pay bills on time, but this is a sure sign that financial crisis may be looming.
- As well as owing others money, as business owners, people likely owe you money too. If you are constantly receiving late payments from your clients, it can quickly throw your company’s financial train off track.
- Not having enough funds to pay your employees is a common sign of serious financial crisis in a business. Think about streamlining your payroll through reduction of staff or certain redundant positions, or perhaps reduction of your spending in other areas to free up funds for payroll.
- Did you or your spouse have to stop taking a salary from your business so that you are able to financially sustain your company? This is a clear and obvious symptom that your business is in a state of serious financial crisis.
It can be a practical business decision to cut your losses and start afresh. In the past, many New Mexico business owners have said that filing for Chapter 7 bankruptcy not only allowed them to resolve serious financial debt but also helped them lay the groundwork for a fresh start in business, and restored financial stability for the future.