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Small business debt? Consider filing for bankruptcy, cutting deals

Q: From reading your columns, I see that you used to be a bankruptcy attorney. For various reasons, my business has accumulated a lot of debt. But the thing is, I don’t want to file bankruptcy. Any other suggestions?

A: Too much debt can definitely make life and business very difficult. But you will notice I said, “too much debt.” I say that because one thing I also know is that not all debt is bad debt. If you took on some debt to fund a profitable expansion, for instance, that is good debt. If, on the other hand, that expansion went south and you charged a week-long trip to Hawaii, that, needless to say, is bad debt.

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