If Black Friday sales failed to get your small business out of the red, you may have to seek further debt solutions like a Chapter 11 bankruptcy. While bankruptcy shouldn’t be your first choice for a solution to your debt problem, it can be an effective way to reorganize your debt and make it more manageable.
Perhaps your business was formerly thriving, but the Tampa road that runs in front of the parking lot was under construction for the better part of 2018, severely impacting your business revenues. Once the project reaches completion, you expect traffic to resume to its former levels and your sales to substantially increase.
In other words, with a little assistance via a Chapter 11 filing, you perceive that your business will once again be booming. Filing for Chapter 11 won’t impede your ability to operate or own your business. It simply restructures your debts so that you are able to make payments to your creditors.
You will be responsible for detailing a repayment plan that is acceptable to your creditors, who will vote on whether to accept your proposed plan. Then, the court must also approve it.
The period of time for you to repay your debts could be more than two decades long. As one could imagine, these types of bankruptcies are quite complex and must account for many contingencies. When filing for Chapter 11, understand that confirming your proposed plan could take well over a year.
Not all small business bankruptcies are successful. You could potentially face future challenges that impede your ability to carry out the agreed-upon terms. Your bankruptcy attorney can review your options and help you decide on the course of action that’s most likely to succeed.