From Overwhelmed to Empowered: A Step-by-Step Guide to Navigating Bankruptcy for Small Business Owners

February 24, 2025

Running a small business is a dream for many entrepreneurs, but it comes with many challenges. The financial toll can leave one feeling overwhelmed and uncertain about the future. We understand that facing bankruptcy as a small business owner can be scary. However, with the right guidance and strategies, it is possible to recover and grow. Filing for bankruptcy can help a struggling business owner survive and ultimately thrive. 


WHAT IS BANKRUPTCY? 
The word ‘bankruptcy’ has a negative connotation. However, it’s important to not be afraid of it but instead seek to understand what it means. Bankruptcy is a legal process designed to help businesses eliminate or repay their debts under the protection of the federal bankruptcy court. 
Below are three steps to help small business owners feel empowered to revive their business with the help of a trusted advisor. 
  •  A ssess Your Financial Situation 

Before taking the significant step of hiring a bankruptcy attorney, it is crucial to assess your financial situation. The first step in navigating bankruptcy as a small business owner is to take a comprehensive look at your finances. This includes managing your cash flow and reviewing all your assets and liabilities. This comprehensive assessment will provide a clear picture of whether bankruptcy is the most viable option for your business. 
It’s also important to gather all necessary financial documents. For example, putting together balance sheets, income statements, and tax returns. By compiling all of these ahead of time, you are not only helping yourself but also your future attorney. Keeping these organized will save you time. 
  •  Research and Select a Qualified Attorney

Choosing the
right attorney is a critical step. An experienced attorney will be able to advise you on the steps to take prior to filing bankruptcy. They will then be able to guide you through the complexities of bankruptcy law and help you make informed decisions for you and your business. 
Finding an attorney who has experience in working with small businesses and has a track record of handling cases like yours is crucial. This is not something you will find at a small business workshop. However, you can seek referrals of attorneys from your professional network. There might be another small business owner you know that has walked in your shoes and has a recommendation.
  • Consult with the Attorney and Plan the Next Steps

Once you have selected an attorney, schedule a consultation to discuss your situation. Your first meeting will be an opportunity to ask questions, understand the bankruptcy process and develop a strategic plan for moving forward. Be prepared with a list of questions and topics to cover (such as differences between Chapter 7 and Chapter 11), what the costs are, potential timeline, and the impact filing will have on your business. It’s important to work with your attorney on a strategic plan so you have a clear path to stay on track. 
By following these three essential steps, you can approach filing bankruptcy with confidence. The goal is to achieve the best outcome for your business that allows you to rebuild and move forward. 
  • Current Issues in Today’s Economic Environment

Though small businesses encounter many challenges throughout their life cycle, one of the most common issues facing small business owners today is dealing with the challenges that come from obtaining SBA loans due to the impact of COVID-19.  
Many small businesses obtained either EIDL or PPP loans from the SBA to cover short term costs with the expectation revenues would return to normal after the pandemic. When the business’ revenues did not return to pre-COVID levels, business owners were confronted with much higher fixed costs and less revenue in which to operate.
In many of our client’s cases since the onset of COVID-19, we have been able to either restructure or greatly reduce a client’s SBA debt through a Chapter 11 proceeding, or more specifically, a subchapter V proceeding.  
If you are looking for an experienced, bankruptcy attorney who focuses in working with small businesses, please contact the Chair of our Bankruptcy Group Steve Heimberger at
330-434-3000 or sheimberger@rlbllp.com  

By Aj rlbllp.com November 17, 2025
Resolving Disputes Efficiently: How Mediation and Arbitration Benefit You Disputes, whether in business, family, or civil matters, can be stressful, time-consuming, and costly. At Roderick Linton Belfance, we proudly have a team of former judges who lead our mediation and arbitration group. We understand the importance of resolving conflicts efficiently and equitably. Increasingly, clients are turning to mediation and arbitration to settle legal matters. Our unique blend of judicial knowledge and practical legal insight positions us to guide clients through these processes, ensuring their interests are protected while saving time and resources. Why Choose Mediation and Arbitration? Traditional litigation is sometimes necessary, but it is not always the best path for every dispute. Court cases can drag on for months or even years, leading to mounting legal fees and emotional fatigue. Mediation and arbitration offer alternatives that are often more flexible, private, and expedient. At Roderick Linton Belfance, our three former judges bring a wealth of knowledge in this area. Their backgrounds presiding over a wide range of cases give them an unparalleled understanding of legal complexities and dispute dynamics. As mediators, they facilitate constructive dialogue, helping parties reach mutually agreeable solutions. As arbitrators, they apply their judicial expertise to deliver impartial decisions based on the facts and evidence presented. Clients benefit from our former judges as they are adept at identifying the core issues in a dispute, anticipating potential roadblocks, and encouraging productive negotiation. Their reputations for fairness and authority often foster trust and cooperation among all parties involved. Mediation: Collaboration Over Confrontation Mediation is a voluntary and confidential process where a neutral third party helps adverse parties find common ground. Unlike a judge or arbitrator, the mediator does not impose a solution; instead, they guide the conversation and help generate creative outcomes for settlement. Mediation can be especially effective in family law, employment disputes, and business disagreements, where preserving relationships is important. Arbitration: Efficient and Binding Decisions When parties need a binding resolution but wish to avoid the rigidity and publicity of court, arbitration offers a compelling alternative. In arbitration, an impartial arbitrator, often a former or retired judge, considers the evidence and arguments before rendering a decision. This process is typically faster and less formal than court litigation. Our former judges are frequently called upon as arbitrators due to their deep legal knowledge and reputation for impartiality. For clients, arbitration can mean a quicker, more predictable outcome with less disruption to their personal or business lives. At Roderick Linton Belfance, we are committed to helping clients resolve disputes cost-effectively, efficiently, and with dignity. Leveraging the wisdom of our three former judges, we tailor our strategies to each client’s unique situation. Whether through mediation, arbitration, or a combination of both, our goal is to secure the best possible outcome while reducing the stress and expense of traditional litigation. If you are facing a legal dispute, consider the advantages of mediation and arbitration. With the guidance of one of our attorneys and the insight of our former judges, you can move forward with confidence, knowing that your interests are in capable hands. Call us at 330-434-3000 today.
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