Benefits of Chapter 11 Bankruptcy
In the face of seemingly insurmountable debt, it is normal to feel as though little can help get your business back on good financial footing. Fortunately, business owners can use Chapter 11 bankruptcy as a tool to restructure debt and keep their business alive. Business owners struggling with significant debt should consider filing for Chapter 11 relief. The following benefits of Chapter 11 bankruptcy can help business owners overcome their financial problems.
Restructure Your Debts
Chapter 11 bankruptcy gives business owners the freedom to make their own decisions regarding how the business will need to restructure its debt. For instance, a business may elect to simply downsize its operations and reduce its expenses as a result. Under other circumstances, it may prove advantageous for a business to renegotiate its debt, including term and interest rates. Businesses may also choose to liquidate their assets as a way to repay their creditors. In this case, Chapter 11 offers a more beneficial liquidation process than Chapter 7. Essentially, Chapter 11 bankruptcy allows a certain amount of freedom to help you bring your business back to financial order in the best way possible.
Continue Operating Your Business
Businesses can remain operational throughout the bankruptcy process, which will allow you to continue generating income. Although you can keep your business open as you work through bankruptcy proceedings, you may need to seek permission from the court before making certain decisions. There is a good chance the court needs to approve choices associated with the sale of assets, the expansion of your business, and beginning or ending a rental agreement. Consulting with the court may make your business feel cumbersome. However, it is important to remember that earning an income will be critical to getting you through bankruptcy.
Stop Creditor Harassment
The moment that you file your petition for Chapter 11 bankruptcy, an automatic injunction will be filed with your creditors. This injunction, called an automatic stay, specifies that all collection activities, judgments, foreclosures, and repossessions of property must halt. As you may imagine, an automatic stay will make your life considerably easier. As you work your way through the complex process of resolving your financial problems, creditors stay at bay.
Consult with a Chapter 11 Bankruptcy Attorney in Fayetteville
Filing for bankruptcy may be the only way you can regain control of your business. If you would like to learn more about the benefits of Chapter 11 bankruptcy, the Fayetteville Chapter 11 bankruptcy attorneys at Bradford Law Offices, PLLC, can help. We can outline exactly what your business stands to gain from exercising your right to declare bankruptcy. To speak with one of our bankruptcy lawyers about the particulars of your financial situation, please call our offices at (910) 668-0006 today.