Though you may already have some knowledge of bankruptcy filings in regards to individuals, you likely do not understand the differences between a personal filing and a business filing. As the owner of a small or large business, you may have the right to file for a Chapter 11 bankruptcy when you can no longer operate your business because of financial issues. A Chapter 11 bankruptcy gives you the right to file and get help without losing your business. This type of bankruptcy is suitable for a wide range of different companies.
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Who Can File for Chapter 11?
A Chapter 11 bankruptcy is suitable for most types of companies. If you are the sole owner of the company, you can file with the help of a qualified lawyer. You can also file when you jointly own the business with one or more individuals. Corporations also have the right to file in court. When you begin to work with a lawyer and fill out the paperwork, you must explain the type of business you own, if there are any other owners and how you file your taxes.
What is a Chapter 11 Bankruptcy?
One of the first questions you might have before working with Suzzanne Uhland or another dependable business lawyer is what a Chapter 11 bankruptcy entails. Unlike other types of proceedings that require you sell off your property to pay off credits, a Chapter 11 bankruptcy lets you continue running your business and owning property after you file. This is a type of reorganization or a restructuring of your company. This lets you sell off some of your property or assets and find other ways to pay off your creditors. Though you may lose a small amount, you can keep your business.
Why File for Bankruptcy?
Business owners often worry that filing for bankruptcy will look bad to investors and to the general public. Filing for bankruptcy may be your only option or the best option for your company. As the market changes, you may find that the value of your company drops and that you no longer have the customers that you had before. The less money you have coming in, the less money you have to pay your creditors. Those creditors can file lawsuits that results in the court placing liens against your business or assets. Instead of losing your assets, a Chapter 11 filing lets you protect your company and your assets.
Restructuring Your Business
You probably have some concerns over what restructuring your business actually means. Working with a trained protection specialist, you will have the chance to go over everything your business needs, including the number of employees you need and the assets you need to continue operating your business. The specialist will also help you work out payment arrangements with each of your creditors. You can then pay off your debts slowly and over time without losing the valuable things you need to run your business.
Filing for Chapter 11 lets you keep your business and most of your valuable assets while still gaining some protection for the future. You can rest assured that you will have everything you need and that you will have the chance to run your business long into the future when you file.
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