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Chapter 11 bankruptcy: A solution to failed investments

When you have a large estate and a high-earning potential, it is likely that you repurpose your assets into many different investments. All investments, no matter how sensible they might seem, have some risk associated with them, and even the smartest investors can get unlucky at some point.

There may come a time when a few investments turn sour simultaneously. If this happens, you may find yourself overwhelmed with an unhealthy cash flow and rapidly increasing debts. You might find this frustrating, since although you have a bad cash flow, you still have a high earning potential. In cases such as these, Chapter 11 bankruptcy can be a great option in helping you to get back on track.

What is Chapter 11 bankruptcy all about?

Different chapters of bankruptcy have been created for differing situations. Chapter 11 bankruptcy was initially created with the intention to help businesses reorganize their finances, giving them the opportunity to buy time before needing to repay their debts. Although it is very often used for this reason, it can also be used to help individuals with a high-earning potential despite their debts.

It makes it possible for individuals to be able to renegotiate the terms of their debts with creditors. You can then create a reorganization plan in regard to your cash flow, making it possible to have a profitable plan for the future.

Chapter 11 bankruptcy is a rare choice for individuals; however, it can be the best possible choice in some unique situations. It is important to consider all the details of your situation before filing for Chapter 11 bankruptcy.

Source: FindLaw, "Chapter 11 Bankruptcy," accessed March 30, 2018

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