Starting a business can be exciting. However, it would be unwise not to advice people that it also comes with a great deal of risk, and much of the risk that you’ll be taking on is financial. Some business deals end up great and become very profitable over time. However, that isn’t the case for every person and every company. If your business doesn’t quite go as planned, you may find yourself with a mountain of debt and not enough money to pay it. In these cases, chapter 11 bankruptcy could be an option to help remedy your problem. If you haven’t considered the idea of bankruptcy, here’s how it may help your business:
• Because of the debt that you’re in, you may be worried that your creditors will eventually be able to shut down your business. However, a chapter 11 bankruptcy filing could help stop this from happening. After you file, you can rest assured that you’ll be allowed to keep your business open. This not only gives you a chance to continue to generate revenue, but it also means that you get to continue servicing your customers and building your brand.
• One of the best things about chapter 11 bankruptcy is that you’ll have the opportunity to restructure your debt. Under the law, a Chapter 11 petition allows you an extended period of time to pay down your debts, including some of your unsecured tax debt. You may even be able to get rid of some of your contracts so that you can reduce the amount you owe to creditors.
• If your debt interest rates are what’s impeding your ability to pay your bills you need to know that a chapter 11 bankruptcy filing may be able to help. Once you begin reorganizing your debt, you may be able to have an attorney renegotiate your interest rates. This also helps to give you more breathing room in paying off your business debts.
Finding yourself in over your head in business debt doesn’t mean that you have to stay in that financial situation. If you’re looking to get your business out of the financial hot water it’s currently in, get in touch with the bankruptcy attorneys at Thompson and DeVeny Co. Visit us to get more information about how a bankruptcy attorney can help you use a chapter 11 petition to get your company back on the right financial track.