Filing for Commercial Bankruptcy in Colorado
While you can’t control the economy, bankruptcy can offer a fresh startBy Benjy Schirm, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on November 3, 2023 Featuring practical insights from contributing attorney Aaron J. Conrardy
Use these links to jump to different sections:
- Colorado Bankruptcies Track Economic Downturns
- Other Factors That Impact Business Bankruptcy Cases
- Find an Experienced Bankruptcy Attorney
All it takes is one bad deal, one unhappy client, or one bad contract, and your business could go under. Though it’s not always the business’ fault, when it happens, it’s time to seek help.
Often, in the worst of times, it is hard to see the next move or to know when to ask for help. But small business owners should reach out to a bankruptcy attorney about their debt relief options or if it’s time to file bankruptcy if they see:
- A significant decrease in revenue;
- Are unable to pay taxing authorities; or
- Have defaulted on significant debt.
Colorado Bankruptcies Track Economic Downturns
“Bankruptcy is counter-cyclical,” says real estate attorney Aaron Conrardy. “In Colorado, [when] the market is really good, bankruptcies are way down. It’s been a really strong bull economy for over seven years—it’s only a matter of time before the market corrects itself… When the economy is bad, we are extraordinarily busy.”
Other Factors That Impact Business Bankruptcy Cases
Bankruptcy filings aren’t simply connected to whether the economy is good or bad, however.
Conrardy notes that, even in a strong economy, there will always be sectors that are down. “For instance, a couple of years ago, oil and gas prices dropped, and the companies involved in fracking were no longer profitable. We have this great economy, but in the oil and gas sector, we see a lot of filings… [Or], a couple of years ago, gold prices dropped, and we saw mining companies filing for bankruptcy.”
Economies are highly complicated organisms and impossible to control. Even if you see the writing on the wall, however, there are steps you can take.
“Do everything you can to maintain normal business practices,” says Conrardy. “If an account has historically been paying their invoices every 30 days and then starts paying late, get on the phone and get them back on that 30-day schedule. If they do file for bankruptcy, any payments made outside of that normal course of business could be clawed back as preferences.”
Find an Experienced Bankruptcy Attorney
Conrardy continues: “If a business owner sees the writing on the wall… it is a good time to contact a reputable and experienced Colorado bankruptcy attorney to mitigate any downside possible.”
See our bankruptcy law overview and related content for additional information on this area of law, including:
- The main types of bankruptcy (Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy);
- The bankruptcy process, including required bankruptcy forms, filing a bankruptcy petition in bankruptcy court, getting an automatic stay, and what happens at the meeting of creditors;
- The difference between secured and unsecured debt; and
- Bankruptcy exemptions under state laws and the U.S. Bankruptcy Code.
Visit the Super Layers directory to find an experienced bankruptcy lawyer in your area to set up an initial consultation and get legal advice.
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