- 1). Value your business. After filing personal bankruptcy protection, your business has to be valued to determine your partial Chapter 13 payments to unsecured creditors or valued prior to relinquishing your assets after filing Chapter 7 protection. You can value your business by totaling all your business assets such as equipment, fixtures, and accounts receivable; then subtract all liabilities, such as loans, lines of credit, and accounts payable.
- 2). Hire a business broker. Ask a professional business broker to verify your business value as you have assessed it; you must disclose to the broker you have filed for personal bankruptcy protection prior to listing your business for sale. Professional business brokers are experienced in valuing small businesses and compile lists of potential buyers. They are also extensively knowledgeable about marketing your small business.
- 3). Qualify potential buyers. Potential buyers extending a purchase offer should provide financial statements and/or loan qualification documents that demonstrate the ability to purchase your small business. Give priority to buyers who do not have purchase contingencies such as having to sell a parcel of real property or another business before purchasing your small business.
- 4). Disclose the past three years business financial records. Gather the last three years balance sheets, tax returns, and profit-and-loss statements to present to your business broker and qualified buyers. You will also need a complete lists of assets and liabilities. If your personal bankruptcy has not been discharged, you will have to disclose the sale of your business to the bankruptcy court.
- 5). Transfer the business to the buyer. Immediately following the sale, transfer all licenses and permits to the new owner, along with the utilities and lease obligation. Contact all accounts receivable and accounts payable and give them notice of the sale. Request any money owed to vendors or due from clients be settled immediately.
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