Is It Time to Throw in the Towel?: Part 1 of 2

Cliff Ennico on

"My business has been shut down the past couple of months due to the COVID-19 pandemic.

"My state is just beginning to ease things up a bit, and I may be able to open up again in the next couple of weeks.

"But there is no way I can catch up on all my debts. I owe three months' back rent to my landlord, three months' missed payments to my SBA lender, and have run up $25,000 in credit card debt just to stay afloat.

"It's going to take me at least a year just to catch up on these payments. Am I better off trying to negotiate all these debts, or are things so far gone that I'm better off just going out of business?"

I have received 25 emails in the past week just like this one.

No question about it: We will be seeing a tsunami of small-business bankruptcy filings in the coming months, and many more business owners will be asking, "Can this business be saved?"


When you're faced with a mountain of debt, there are two things you need to do right away:

-- Perform triage.

-- Do a liquidation analysis.

These will give you the information you need to decide whether you should stay or go.


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