For Business Bankruptcy law certificate holders, “Board Certified – Business Bankruptcy Law – American Board of Certification” and for Creditors’ Rights law certificate holders, “Board Certified – Creditors’ Rights Law – American Board of Certification.”

Get assistance from an attorney today.
Local 813-302-1258    Toll free 866-596-9247

Protect your fleet from repossession with a timely bankruptcy

On Behalf of | May 25, 2021 | Firm News

Those who have never worked in the commercial transportation industry have no concept of how valuable commercial trucks really are. The average person would likely express shock to learn that recently manufactured 18-wheelers could cost as much as a home, possibly much more.

 

If your only option were to pay cash for such a major expense, you might have to wait years to expand your fleet, thereby limiting your company’s growth. Financing the purchase of commercial vehicles makes a lot of sense, as they will help your company generate revenue that will cover their financing costs month after month.

 

However, business issues ranging from a lack of staff to a loss of company licensing could keep your trucks off the road and your company from generating profit. It won’t be that long after money stops coming in that the financing companies will start seeking repayment more aggressively. Filing for bankruptcy before repossession occurs could help protect your fleet.

 

Business bankruptcy can help restructure your debt

Pursuing bankruptcy for your company can benefit you in several ways. The first and most important may be the automatic stay. As soon as you file, creditors can no longer continue collection activity against your company.

 

Even if they have already initiated the repossession of your vehicle, they will have to suspend those efforts until either you resolve your bankruptcy case or they go to the courts and ask for an exception. That automatic stay gives you enough time to review your finances and prepare for a meeting with your creditors.

 

Renegotiating your vehicle financing debt can help you regain control of the company finances. Instead of needing to pay all of the missed payments in a lump sum up front, and expense that may be impossible with your current level of revenue, you may be able to add those payments to the end of your loan. Other times, companies may be willing to consolidate multiple loans, reduce monthly payments or otherwise find better terms that allow you to make a reasonable attempt at repayment.

 

Bankruptcy can be a fresh start instead of an end

Too many business owners think about bankruptcy as the end of the road and a sign that their company will surely soon fail. Bankruptcy filings can be useful for companies about to close, but they can also help bring companies back from the edge of insolvency.

 

A Chapter 11 bankruptcy filing can help you get rid of some of your unsecured debt and regain control over other lines of credit so that your business can remain operational and eventually start generating a profit again.