Running a business can be tough. While you can work tirelessly to make your business a success, sometimes there are simply factors beyond your control that will mean that the going gets tough.
If your business finds itself struggling against seemingly ever-increasing debts, it is vital that you do not bury your head in the sand. Instead, you should be proactive in taking action and remedying the situation.
Chapter 11 bankruptcy is a certain type of bankruptcy that helps people to make large reorganizations in cash flow so that they are able to not only repay their debts, but become profitable in the future, too.
Chapter 11 therefore can be useful for both large personal estates and for small businesses. This form of bankruptcy can present exciting opportunities that can lead to a small business not just surviving, but thriving, too.
Automatic stays and benefits for small businesses
One obvious benefit of filing for Chapter 11 bankruptcy as a small business is that it means that an automatic stay will be put into place as soon as the filing has been made. This means that all collection activities will have to halt, including attempts to repossess property.
Additionally, the opportunity to reorganize your business can be very beneficial. It will give you the time and space to help you reflect on how you want your business to grow in the future and can help you recover from overwhelming debt.
If you are struggling with debts as a small business in Florida, it is important to take swift action and move positively toward the future.