A Chapter 11 bankruptcy can be complex. You may want to keep your business open and to retain as many of your employees as possible, but that does require finding ways to reduce your debts and renegotiate the way you do business.
Your business comes first, and if you want to keep it open, restructuring through a Chapter 11 bankruptcy could be the right choice. It’s a good idea to talk to your attorney about how to address commercial issues such as renegotiating contracts, talking to creditors and working to get your books back into the black.
Why is a Chapter 11 bankruptcy a good choice for businesses?
Chapter 11 bankruptcy is a good choice because it allows for the restructuring of a business. It’s a bankruptcy that aims to keep the business open and to restructure it in a way that it can be profitable while repaying what it owes.
As a Chapter 11 debtor, you would propose a plan to keep your business running. You also need to come up with a solution that would make your creditors happy, too. That’s where your attorney can come in to help. They’ll have information and the skills needed to help you renegotiate and suggest a plan that your creditors may actually agree with.
Remember, creditors want to get their money back. They’ve invested in you. Adjusting how you repay them may be in their best interests, which is why a Chapter 11 bankruptcy can work. If you intend to keep your business open, this may be the solution you’ve been looking for. Our website has more information.