Bankruptcy is a term we hear way too often in the health club industry nowadays. Defining bankruptcy is simple, it is when your liabilities outweigh your assets and you no longer have the ability to pay your bills so you are considering filing bankruptcy as a way to dissolve your debt.
What most people don’t know is filing for bankruptcy is not a simple thing to do. You have to be able to prove that there is absolutely no way you can pay your bills. One of the misconceptions of filing for bankruptcy is, it is simple and easy and you can just file bankruptcy and walk away free and clear. But it really doesn’t work that way, it’s not a simple thing to do.
When you file for bankruptcy, depending on the chapter of bankruptcy you file, you have to go through difficult processes and there are other court-appointed people (trustees) to oversee the liquidation of your assets and pay as many of your creditors as possible.
One of the first things they are going to do is determine the value of your health club business. Most health clubs are set up to where they run the business as one company then the actual real estate is set up as a separate company. They do this so when they get into financial trouble, they don’t lose the real estate, the real estate being the most valuable asset.
The key thing is, is to avoid bankruptcy at all costs because whenever you file bankruptcy, they can also come in and put liens on any real property that you have or possibly future earnings. There are various options available to health clubs if they are knowledgeable about the court systems and bankruptcy laws so it is extremely important to have good representation.
More than one hundred health clubs a year have been going out of business for the past several years. If you learn how to properly market your health club, bankruptcy should never even be a consideration.
With MMC®’s no risk self-funding marketing campaigns, (https://www.healthclubmarketingmmc.com/no-risk-self-funding-health-club-marketing-campaigns/) we can raise immediate cash for your health club (as much as $100,000-$500,000 in most cases) and help you out of any negative financial situation you may be facing and with MMC®’s help you will definitely grow your health club and your health and fitness career.
For more free tips on increasing your health club membership base through health club marketing, health club promotions, professional health club membership sales, and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-448-5727.