Bankruptcy is probably the scariest financial option in you or your company’s financial life. If you are facing a financial crisis and are finding it impossible to pay your bills, bankruptcy might be an option to consider. It is important to realize that while bankruptcy is a very serious decision, it does not have to be completely negative. Bankruptcy allows you to close the book on a very financially stressful period and begin to rebuild your company. Keep in mind that bankruptcy is not just an easy way out of debt with no personal responsibility. It is also important to try other options before turning to bankruptcy. Bankruptcy will be a black mark on your company’s financial record and may find other companies less willing to work with you after filing. There are different types of bankruptcy and it is important that you hire a Chapter 11 Law Firm to assist you in determining which applies to your situation.
What is Chapter 11 bankruptcy? There are several types of bankruptcy and while only a Chapter 11 lawyer can tell you if you are eligible, here is some basic information to help your company figure out if it might be the next step. Before considering bankruptcy, you should exhaust every other option available. Contact your debtors and ask them if they will work out a payment plan and consult with Chapter 11 Lawyers to see if your company has other options. Chapter 11 is considered rehabilitation bankruptcy and is used primarily by large corporations. Individuals cannot file for Chapter 11, but any business can if they meet the requirements. Unlike liquidation bankruptcy, your company will be able to keep most of your assets and keep its doors open. In rehabilitation bankruptcy, your company will consolidate its debt and make one affordable monthly payment for an agreed upon period of time. In addition, your company will be restructured to run more efficiently. If you make the agreed upon payments on time each month, your debtors will generally agree to forgive the outstanding balance on your debts. This type of bankruptcy requires Chapter 11 lawyers to work out the details of repayment and restructuring.
Chapter 11 bankruptcy is the most complicated type of bankruptcy. It is very important that your company hires experienced Chapter 11 attorneys to help you through the process. Your lenders must agree to restructuring bankruptcy. If you hire an inexperienced or ineffective Chapter 11 attorney your request can be declined and you risk having to close your business by being forced into liquidation bankruptcy. Protect your business and hire a lawyer to be on your side and help you cut back and restructure your company in a way that will allow you to bounce back as quick as possible from bankruptcy and start seeing profits. If you live in Florida, contact a Chapter 11 Miami bankruptcy attorney to help your company through the difficult process of bankruptcy.