There are many instances when businesses become in dire need of a fresh financial start. Debts can become a vicious cycle of repayments and inability to meet those repayments, ultimately incurring further costs.
If you are the owner of a small business, you may want to consider whether Chapter 11 bankruptcy would be a good choice for you. It can help businesses repay their debts and get back on track.
Who is eligible for Chapter 11 bankruptcy?
Chapter 11 is a type of protection for debtors that helps them to reorganize their cash flow and repayment plan so that it is manageable and realistic. What might be surprising to many is that Chapter 11 bankruptcy, although common among businesses, can be filed by anyone. This is not to say, however, that it is the best choice for everyone.
For whom is Chapter 11 ideal?
Filing for Chapter 11 bankruptcy is likely to be the best option for businesses that are struggling with the organization of their payment plans and cash flow. It is also ideal for those with a very complex cash flow system: When a person owns his or her own business, that creates more complexity. It’s also important to note that filing for Chapter 11 can be expensive, costing over $1,000 to file the case.
If you are considering filing for Chapter 11, it is important to look into all bankruptcy options to see what is right for you to set you on the path to a fresh financial start. An experienced Florida bankruptcy attorney can provide important guidance.
Source: The Balance, “What is Chapter 11 Bankruptcy?” accessed Nov. 23, 2017