- Bankruptcy can be used as bargaining chip to allow the entrepreneur to voluntarily restructure and reorganize the venture.
- File before the venture runs out of cash or has no incoming revenue so that expenses not protected by bankruptcy can be paid.
- Don’t file for Chapter 11 protection unless the venture has a legitimate chance of recovery.
- Be prepared to have creditors examine all financial transactions for the last 12 months, seeking possible debtor found.
- Maintain good records