How business owners push through Chapter 11 bankruptcy

Business success often boils down to how profitable it is. Unfortunately, when owners run low on money and have debt to pay off, it can leave them with feelings of fear and anxiety as the future of their company remains uncertain.

Luckily, filing for Chapter 11 bankruptcy can give organizations a chance to get back on their feet while they’re reorganizing their finances and negotiating payments with creditors.

Ways businesses can bounce back

Here are a few things owners can do to get their organization functioning at a healthy pace again:

• Slowly boost their credit score: Unfortunately, when owners file for Chapter 11 bankruptcy, it can put a black spot on their credit report for nearly a decade. However, they can regain their credit score by making timely payments on credit cards or other bills used in business operations.
• Analyze and understand their mistakes: Failing is a normal and sometimes good part of being an entrepreneur. That’s because it can allow owners to look at elements of their business that caused financial hardship and make sure they don’t repeat those same mistakes. Once they understand what went wrong, they can do what's necessary to get back on track.
• Find alternative options for funding: Even while they’re still paying creditors, owners may still need to find different avenues for financial support. Fortunately, there are a few ways they can do this. One option is to find another business partner who has a good credit score. This move can allow the partner to get new loans from the bank while the owner focuses on getting rid of their debt. If owners don’t want to find another business partner or negotiate with the banks, they could look at finding an angel investor to lend them money.

Bouncing back from Chapter 11 bankruptcy is possible

While digging a business out of bankruptcy can feel impossible, there are plenty of methods and options available for doing so. Business owners who are considering filing for bankruptcy may want to speak to a business law attorney. They can help them sort out your finances and find a payment option that works for them.