Businesses face financial challenges all the time. Markets change, the cost of supplies goes up, and consumer needs may shift. All of this could leave your business struggling to adapt and find a profitable way forward. But this can be hard to do when creditors are breathing down your neck. If you’re wondering how you can obtain financial relief for your business and avoid creditor harassment, then bankruptcy might be a good option.
The basics of Chapter 11 bankruptcy
One bankruptcy path that might be available to your business is Chapter 11. Through this type of bankruptcy, you create a reorganization plan that seeks to repay some debts and discharge others, all while returning your company to profitability. One of the biggest advantages to a Chapter 11 bankruptcy is that you can continue to run your business. Some of your decisions might have to be approved by the court, but unlike a Chapter 7 bankruptcy, you won’t have to sell your business assets and close up shop.
Determining if bankruptcy is right for your business
Dealing with the financial realities of a struggling business is hard. And far too often, business owners think that seeking bankruptcy protection means that they’ve failed. But this isn’t the case. The bankruptcy code itself is a testament to the need for second chances and successful businesses. Therefore, if your business is facing overwhelming debt, then you need to carefully consider what you want for the future. Do you want to keep your business and try to turn it around? If so, then Chapter 11 might be right for you and your business. If you want out of the business altogether, then Chapter 7 liquidation or selling your business in another fashion might be the best course of action.
Get the legal help you need
Bankruptcy proceedings can be complicated and time consuming, especially when you’re responsible for creating a reorganization plan like you are in Chapter 11 proceedings. However, because they can be extremely beneficial to your business, you shouldn’t push bankruptcy proceedings off as something that is unattainable.
Instead, you can better ensure that you’re receiving the protections that your business needs by working closely with a business litigation firm that understands the ins and outs of the bankruptcy process. So, if you’d like to learn more about what bankruptcy can do for your business and how to navigate the process, consider reaching out to a firm that is experienced in this area of the law