Recently, two prominent businesses in Denver have announced that they are filing for bankruptcy protection – national-chain Circuit City and Colorado-based Shane Company.  However, last year, an estimated 900 to 950 businesses filed for bankruptcy in Colorado.  This is the highest number of bankruptcy filings since at least 1999 and maybe before with the exception of 2005, the year prior to new bankruptcy rules taking effect creating a rush on bankruptcy filings.  This is not surprising considering that consumer confidence was at a low and that individuals throughout the state are cutting back on spending.

So as a small business, what do you have to know about bankruptcy?  If you are a business that isn’t facing bankruptcy but worries about companies that you deal with filing bankruptcy, it is important to have contracts, mortgages on property, and assurances of payments.  If you are a business facing bankruptcy, it is important to contact an attorney as soon as possible to determine whether there is something that can be done to salvage the business.

Whether you are a small business worried about others going bankrupt or a small business racing bankruptcy, contact me, your Denver Small Business Attorney, today at Elizabeth.Lewis@eclewis.com or 720-258-6647.