Filing for bankruptcy could save your business
If your business has been struggling to stay solvent and you’ve seen a decline in business, then it may be time to look at restructuring your debts. A Chapter 11 bankruptcy can help you get your finances back in order and renegotiate debts and contracts to help your business be more profitable.
A Chapter 11 bankruptcy is common, but you should know that it can take years to complete it. These are complex matters, so you want to have someone on your side who understands the steps to take to minimize your losses and maximize the outcome.
When you work with your attorney, the first step is to file for bankruptcy. At that point, all listed creditors can no longer attempt to collect debts. Taking this step also helps to stop current lawsuits, formal attempts to take assets from the debtor and garnishment actions.
Why would a business want to restructure its debts?
If you are in a business where you are struggling to pay your staff or are worried about covering the cost of working with vendors, then you may want to consider restructuring your debts. This is a good bankruptcy form for those who want to keep their businesses open. There may have to be some job losses or a reduction in hours to meet the new financial plan you create, but this can be a good way to keep your business open and running so that you can build it back up over time.
Your attorney can give you more information on bankruptcy and what to do if you want to work on your business’s finances to prevent it from closing.