Business owners put everything they have into their business to try and become as successful as possible. Unfortunately, owning a business isn’t always easy and business owners may find themselves in overwhelming debt. If you aren’t sure where to turn when money gets tight, an experienced Rockland County Bankruptcy attorney can help you assess your options. One such option may be business debt restructuring through Chapter 11 Bankruptcy.
When a business files for Chapter 11 Bankruptcy, it has the ability to strip off unsecured debt and reorganize secured debt over a five year period, while remaining in operation and earning money. This restructured payment plan will allow the company to make smaller payments over a longer period of time, which should ease some of the burden on the company. In order to file for Chapter 11 Bankruptcy, the business representative will file a Bankruptcy petition as well as a detailed schedule of all of the business’ assets, liabilities, expenses, income, contracts, unexpired leases, and a detailed financial statement. The business will be allowed to keep its doors open and keep staff employed. Another benefit to filing Chapter 11 is that the business will be granted an Automatic Stay, which stops all debt collection immediately.
Those who file for Chapter 11 are either corporations, sole proprietorships, or partnerships. There is a 120 day period after the business files its Bankruptcy Petition for the business to create a reorganization plan, which must be approved by both the Bankruptcy court and the largest creditors involved.
If your business is struggling financially, you may want to consult with an experienced Bankruptcy attorney who can take a look at your situation and guide you in the best direction for your success.
If you require the services of an experienced Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.