As a business owner, you’ll do whatever it takes to maintain a strong balance sheet. However, things can take a turn for the worse when you least expect it, thus leading you to learn more about Chapter 11 bankruptcy among other options.
While it’s not something you look forward to, you may come to find that Chapter 11 bankruptcy is the only way to stabilize your business with the idea of continuing to serve your industry in the future.
Even if you’re not 100% on board with the idea of filing for Chapter 11 bankruptcy, it never hurts to learn more. You may not file right away, but if your finances worsen in the future it’s something you could revisit.
Here are some of the many reasons why business owners often turn to Chapter 11 bankruptcy:
- You can continue to operate: Even though you’re paying off some of your debts, your business can continue to operate in the manner you’re accustomed to. This allows you to maintain stability, both for yourself and your employees.
- Automatic stay: If you’re tired of creditors harassing you, you may consider this the top benefit of Chapter 11 bankruptcy. With the automatic stay, it’s illegal for creditors to contact you at your place of business or home.
- You don’t have to pay back all your unsecured debts: If you have unsecured debts, Chapter 11 bankruptcy allows you to partially pay them back. This has the potential to save you a lot of money.
- Restructure secured debts: For all secured debts, you have the opportunity to restructure them over a longer period of time, thus securing a lower monthly payment. This may be just what you need to create a financially sound plan that you can stick to.
Along with the above, there is no such thing as a debt that you can’t discharge through Chapter 11 bankruptcy. Everything is on the table.
If your business is slipping further and further behind every month, it’s time to learn more about Chapter 11 bankruptcy, including the process, pros, cons and the impact it will have on you and your business now and in the future.