I am hoping that you never have to think about what to do when your business is officially bankrupt, but sometimes with the best will in the world circumstances conspire against us and these things happen. The best way to come out of a situation like this with your head held high is to be honest and co-operate fully with the process. Bankruptcy is very stressful for everyone and you are likely to feel responsible for the people around you who you are affecting such as your family and employees. Do your best to treat everyone fairly and maintain their respect. Don’t go mad and do anything silly like feed your businesses vital documents into the office shredders! Stay calm and deal with each issue as best you can.
In order to avoid a situation like this in the first place the best thing you can do is stay on top of your company finances. Maintaining a realistic picture or where you are up to on a monthly if not weekly basis will allow you to plan ahead for difficult times and avoid debt spiralling out of control. File and notate financial information in your records as promptly as you can and use the shredder confetti cut setting to thoroughly destroy pertinent information afterwards. If things are not looking good then seek professional advice at the earliest opportunity at put plans in place to combat the problems.
Bankruptcy is usually the final stage of a long process of trying to save a business from ruin and unfortunately in today’s financial climate it is happening more and more often. Do your best to quit while you are ahead if at all possible and don’t be afraid to admit defeat if the worst happens. It is not the end of the world and you can move on.