It is a simple fact that businesses can acquire cash flow issues at some point in their development. This does not mean that the business itself needs to fail or that the services they offer need to be fundamentally changed. But it can mean that the business gets into a significant amount of debt over time.
Many businesses in this situation decide to look into bankruptcy as an option in helping them with this debt and providing a structure from which the business can get back on track.
Is Chapter 11 bankruptcy suitable for cash flow issues?
Chapter 11 bankruptcy is centered on helping businesses and individuals to reorganize their finances, so that they can maximize income streams and minimize unnecessary outgoings. It means that a cash flow that is not optimal can be fixed by analyzing the businesses income structure and reorganizing appropriately.
How can I apply for Chapter 11 bankruptcy?
In order to file for Chapter 11 bankruptcy, you need to file a petition with the court. You may have taken matters in your own hands and decided to file a petition voluntarily; however, it is possible for an unpaid creditor to file a petition on your behalf.
Eventually, you will need to submit all of your personal and business details, as well as submit a plan of reorganization and a written disclosure statement in order to start the process.
If you are considering Chapter 11 bankruptcy for your business, it is important that you fully consider the likely outcomes of your decision. Make sure to conduct careful research before taking action.
Source: US Courts, “Chapter 11 – Bankruptcy Basics,” accessed March 01, 2018
