Owning and operating a business is difficult, and, sometimes, it costs a great deal of money simply to maintain operations, purchase inventory and pay employees. If you find that you have accumulated a great deal of debt that is now threatening your California business and livelihood, it is important to deal with it effectively in order to protect your long-term interests.
For some businesses, bankruptcy offers a way to both deal with overwhelming debt and maintain control of day-to-day operations. Chapter 11 is a common choice for business debt and is also known as reorganization bankruptcy. One of the many benefits of Chapter 11 is that it allows the applicant to pay off debts over time while still keeping business assets.
Finding debt relief through Chapter 11 bankruptcy
Both consumers and businesses can seek the protection of Chapter 11 bankruptcy, reorganizing debts in a way that allows them to make monthly payments. In addition to the debt payoff plan, the applicant may enjoy the following benefits of Chapter 11:
- It allows the applicant to continue business operations.
- It will halt all collection efforts.
- Filing will protect personal and business assets.
- Applying gives the applicant the ability to refinance a mortgage on commercial property.
- It will provide the ability to discharge debts, such as in Chapter 7 or Chapter 13 bankruptcies.
Not everyone is eligible to confront debt through Chapter 11 bankruptcy, but an experienced attorney can determine if this is a viable option for you. If it is, you must file your bankruptcy petition with the federal court, as well as a reorganization plan. Your attorney can assist you with every step of this process, including drafting a reorganization and repayment plan.
Debt does not have to control your future
Whether you bought inventory on credit or are simply going through a slow period, there are many reasons why your business could be facing debt and threats from creditors. It may seem impossible to find a way out, but in reality, there could be a legal way by which to deal with your serious business debt problem in an organized and timely manner.
Debt does not have to dictate your future or threaten the longevity of your business. By filing for Chapter 11 bankruptcy, you can keep operations going and pursue a stronger, more profitable future.