New Bankruptcy Laws Scare Off Entrepreneurs

Recent reforms in bankruptcy laws, which hold businesses more accountable for debt repayment even in the case of filing for bankruptcy, may significantly impact the entrepreneur community. Faced with less protection, entrepreneurs will be less likely to take risks and will pass up growth opportunities in order to maintain a sounder financial base. Many experts also anticipate that the new bankruptcy reforms will cause a decrease in new, start-up businesses.

Calculate My FREE Annuity Quote Now!

  • Optional: For a 2-person annuity (joint lives)

No agent will call you

Your privacy is guaranteed.
Find advanced calculator options here.

Get quick answers to your annuity questions: Call 800-872-6684 (9-5 EST)

According to some experts, the government based its assessments of the impact of bankruptcy reform on small businesses on inaccurate data. Specifically, the government's estimate of the number of small businesses filing bankruptcy in a given year was about nine times lower than the actual cases of small business bankruptcy filed. Why the discrepancy? Changes in classifications have left many small business owners filing on behalf of their businesses to be categorized as individual filers.

Given the new bankruptcy laws, experts advise that entrepreneurs take extra caution before taking growth risks as more than their businesses could be at stake in the case of a financial disaster. This might be discouraging to those whose businesses depend on risk for growth.

Testimonial Image
We wanted to establish a bit of extra income. There was a good recommendation about on CNN. We also liked that we could see excellent reviews about them on Google. They were very thorough from our first inquiry to when we decided to buy our annuity from Mass Mutual. They always answered our questions promptly and followed up with the insurance company, too. We have been receiving our monthly payments since last November and couldn’t be happier. What more can we say?
Keith and Samantha Isley
Read 650+ verified reviews

We'd love to hear from you!

Please post your comment or question. It's completely safe – we never publish your email address.

Add a new comment:(Allowed tags: <b><i><br>)

Comments (0)