You work hard to make your trucking company successful. Over the years, you’ve learned to control many small problems that threaten your success. But you may struggle to control larger issues like a downturned economy or high insurance rates.
When these problems put you on the brink of closing, you may need a way to reorganize your business to make it more effective. A Chapter 11 bankruptcy can help you stay afloat during hard times.
Trucking industry going through a downturn
After the success of 2018, the trucking industry has started to decline. With more drivers and less freight, experts agree that the industry is close to a recession. And a recession in trucking can often be a sign of a future recession in the U.S. economy.
When the economy goes into recession, trucking is one of the industries hit the hardest. As consumers buy fewer goods, companies order less, and manufacturers produce less. This decrease means truckers don’t have as much freight to haul.
Chapter 11 can help trucking companies through a recession
When your drivers aren’t hauling, your trucking company loses money. And with the high cost of maintenance and insurance, you may not be able to keep your business open. But if you find your company in unmanageable debt, you can use a Chapter 11 bankruptcy to reorganize your debts and make a plan to stay afloat.
Chapter 11 is meant to help you keep your business alive. You can work with a bankruptcy attorney to create a payment plan for your creditors while you continue to operate your company. Your business stays open. And you have breathing room to restructure your finances to remain profitable.
If you have been in trucking for a long time, you know the industry goes through highs and lows. When it reaches a low point, and you find yourself in debt, Chapter 11 bankruptcy can help you stay alive until the economy rebounds.