When a business is struggling to make ends meet, the business owner will likely be concerned about what the future holds. If a business is faced with mounting debts, the business owner should take bankruptcy into consideration to determine whether it is possible to stay open while reorganizing finances. A chapter 11 business bankruptcy is a wonderful tool that can allow a business to remain open and keep employees on the staff while constructing a reorganization plan that will allow the business owner to repay debts over a 5 year period.
How do I know if chapter 11 bankruptcy is best for my business?
It is important to be aware that as great as a chapter 11 business bankruptcy is for some businesses, it may not be an option for others. Chapter 11 is a very effective form of bankruptcy for businesses that have assets worth more than the outstanding debts. If the business still has the potential to make a profit, this may be a good option.
With that said, some businesses may be better off with a chapter 7 business bankruptcy. This option typically results in the closure of the business but it does allow the business owner to walk away free from their debts thanks to liquidation.
If your business is facing a significant amount of debt, contact our firm today to discuss how bankruptcy can help.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.