Chapter 11/Small Business Bankruptcy
No business or real estate owner wants to see the economy drop the way it has. With poor economic standards, families are scraping to get by, even cutting out time for recreation. This means that hotels and motels suffer from lack of business, and some are barely meeting financial goals. The temperature of the economy is staying steadily low, with no indication of picking up any time soon. For your business or real estate that is suffocating with debt, it’s time to consider your options. Deciding to file for bankruptcy may be a realistic alternative to your debts. If you would like to continue business, filing for Chapter 11 can help you reorganize and restructure your finances to stay afloat. The bankruptcy code provides for exclusive periods of time for businesses to refine and restructure their businesses without interference from creditors as long as they comply with local rules and the code itself. You don’t have to shut down business just because of a struggling economy.
Filing Under Chapter 11
While filing for bankruptcy can seem like a desperate step to take, if you file for Chapter 11, you may still have the ability to continue operating your business. This will benefit you greatly with the chance to get your finances cleared and your business back to life. The bankruptcy court will have involvement and control over major decisions such as lease agreements, expansions or entering into contract agreements. They will have to approve any of these actions, but still allow you to operate while seeking approval.
Debtors generally have exclusive control for the first few months to provide input on the reorganization plan that their business will go through. Large debts can be difficult to juggle while managing a business, which is why the benefit of restructuring your finances and reducing debt payments to smaller increments can be extremely helpful. You will also have the potential to sell assets in order to have a more manageable, focused scope of business. Whether you want to hold onto your business or liquidate, Chapter 11 bankruptcy makes it possible.
Is My Business Eligible?
If you are considering filing bankruptcy as an option for you small business or real estate investments, Chapter 11 may be your best option. The main purpose is for your business to balance expenses, regain profits, maintain operations and even downsize, which is useful to any sole proprietorship or corporation experiencing financial difficulties. If you want more information on how to determine whether or not your business is should consider Chapter 11, getting legal guidance is the next step. Chapter 11 bankruptcy may seem like a risky choice, but by having a bankruptcy attorney examine your situation and financial records, you will be better informed in whatever decision you make.