Are self-employed Minnesotans more likely to file for bankruptcy?
At Atlas Law Firm, you can find an Anoka, St. Paul or Minneapolis bankruptcy attorney who can help you come to the right decision, and through timely and calculated actions, assist you as you look to protect your credit and keep your business.
Business owners are often risk-takers by nature. To start a business is to beat the odds, growing an idea from a seed into a fully flourishing plant. However, despite the success stories, many self-employed individuals and small business owners in Minnesota aren't able to fully realize even their best business ideas.
Still, if you're looking to start a business, or venture on your own into a freelance or consultant capacity, you may be concerned whether this demographic is more susceptible to bankruptcy.
According to a 2010 report by the Institute for Financial Literacy, more than 58 percent of those who sought a Chapter 7 or Chapter 13 protective filing were working with a business that they did not own. By comparison, self-employed individuals accounted for roughly 10 percent of filers.
Given the smaller number of self-employed Americans, it is hard to determine exactly which group is more likely to file, though those who work in the bankruptcy industry say they deal with disproportionately high numbers of this group.
Some of the main reasons these Minnesotans may be more at risk is that they often use personal funds to fuel their business. Because of this, it can be more difficult for them to determine when their finances are solvent and when they need to start budgeting for bankruptcy legal fees.
As a self-employed individual or business owner in Minnesota, it's important for you to seek legal counsel if and when your finances begin to spiral out of a control. At The Atlas Law Firm, you can find a Ramsey, Carver or Minneapolis bankruptcy attorney who can help you come to the right decision, and through timely and calculated actions, assist you as you look to protect your credit and keep your business.