Chapter 11 Bankruptcy Saves Businesses Struggling With Debt
Businesses rely upon debt to build capital and keep operations running. When a debt situation gets out of control, however, business owners must look for effective solutions. Perhaps the most powerful debt relief option for debt-laden businesses is Chapter 11 bankruptcy.
If your business is hampered by debt, the attorneys at Thames Markey can help you harness the power of Chapter 11 bankruptcy. We can also help you explore other debt relief options. With law offices in Jacksonville, we are trusted debt relief allies for businesses throughout Florida.
Reorganizing Through Chapter 11
In Chapter 11 bankruptcy, the business reorganizes through a court-supervised plan crafted to suit the best interests of the creditors. Typically the debtor business will keep operating during the course of the reorganization. Some debts may be discharged altogether, while others are paid to creditors as part of the reorganization plan. Upon successful completion of the plan, the business will often emerge as a leaner, more profitable enterprise.
Chapter 11 Stops Creditors
Creditors have the power to significantly hurt and even shut a business down when they employ aggressive collection tactics. Bankruptcy puts the power back in the business’s hands. As soon as a Chapter 11 bankruptcy is filed, the automatic stay goes into effect. This is a powerful legal injunction that bars creditors from filing lawsuits, seizing bank accounts, foreclosing on property and taking other actions against struggling businesses.
In the case of a Chapter 11 bankruptcy, the automatic stay gives the business time to catch up, reorganize and move on without having to constantly worry about what creditors are going to do next.
Explore Your Debt Relief Options
Chapter 11 bankruptcy can help your business weather a financial storm and continue operating. It can also be utilized to facilitate an orderly wind-down of your business or a sale of assets free and clear of lingering debt issues. On the other hand, if you wish to walk away from your business while resolving its debt problems, a Chapter 7 bankruptcy may be a better option.
Chapter 11 bankruptcy is not only for businesses. Individuals with complex debt situations that rise above the Chapter 13 debt limit may also file under Chapter 11.
Speak With An Experienced Chapter 11 Bankruptcy Lawyer Today
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.