If you are a business owner in the state of Florida and you are struggling with overwhelming debts, you have many options available to you. Some of the most common problems that business owners have to deal with are cash flow issues and the way that the business is structured.
If you, as a business owner, are considering filing for bankruptcy in order to address your debt problems, it is important to learn more about the way that a bankruptcy filing can help you address the root issues.
How can Chapter 11 bankruptcy help struggling businesses?
Chapter 11 bankruptcy can help businesses go through a restructuring process that allows the business owner to make the business more profitable. In addition, the business will benefit from some protections made possible by the bankruptcy courts, such as the automatic stay.
What are the benefits of an automatic stay?
An automatic stay comes into effect when a business has filed for Chapter 11 bankruptcy. It essentially means that creditors and debt collectors are no longer legally allowed to seek repayment of debts. This is because the debts are now subject to the laws in the bankruptcy court.
This holds many benefits for the debtor in possession of the business. It means that they are spared the stress of constantly dealing with debt collectors. More importantly, it also means that no further legal action will be taken in regard to the existing debts.
If you are a struggling business owner in the state of Florida, it is important that you take action as soon as possible to pay off your debts.