If you are the owner of a business that is struggling with financial difficulties, it is likely that you have considered the varying options available to you. While options could include making layoffs, changing your business plan or closing down unprofitable aspects of your business, many entrepreneurs decide to take advantage of the benefits of a bankruptcy filing.
The United States courts have made it possible for debtors filing for bankruptcy to benefit from certain exemptions and automatic stays. This is why it can be beneficial to file for a bankruptcy as a business owner. Filing for Chapter 11 bankruptcy, in particular, can help you reorganize your business within a certain time frame so that it can become more profitable in the long run.
What does it mean to be a "debtor-in-possession"?
When you file for a bankruptcy as a business owner, you will remain the owner of the business during the entire process. This also means that you have certain responsibilities when it comes to helping the business successfully get through the process of bankruptcy. During this time, you will become a debtor-in-possession when you file for a Chapter 11 bankruptcy because you are still in possession of the business.
What can I expect to happen after the bankruptcy?
Many businesses begin to function normally and in a healthy way after they have gone through the bankruptcy process. Others get sold to new owners. If you want to free yourself of debts as a Florida business owner, you may want to look into the possibilities of Chapter 11 bankruptcy.