Importance of 30 Day Budget
When a small business owner contacts our firm, one of the most important questions they ask us is “how quickly can I file a case?” The answer to that is easy: right now. While the factors that go into whether or not one should file a chapter 11 case can be complicated and are certainly worth weighing for a period of time, the actual mechanics of filing an emergency chapter 11 case are pretty straightforward: name, address, a detailed balance sheet showing assets and liabilities, and some signatures from the officers. In some respects, counterintuitively, filing a chapter 11 case is easy.
The more complicated part comes over the next days and weeks: bank statements, tax returns, emergency motions, and court hearings. And central to the activity of those first days is a thorough, detailed, and accurate budget of what the officer of the company believes the first thirty days of the case has in store. Is there a Christmas rush or a Christmas lull? Is a big invoice coming due? How many pay periods will be due? All these considerations and more must be considered, carefully documented, and submitted to the court within the first couple of days of the case.
The accuracy of that budget and the familiarity and sophistication with which the officer of the company can walk the court through the budget is the client’s chance to make a good (or bad) first impression. When budget preparation is rushed, it tends to get sloppy. You forget about the fish vendor, the dishwasher lease, and the quarterly CAM charge. So when can we file your case? Whenever you want. But when should you start planning your filing and thinking through your budget of expenses and revenue? Now. Contact us today.
