You love running your own business, but with the economy as it is today, you’re struggling. Anytime there is a dip or downturn in the economy, it does make it harder to make ends meet because you don’t have as much income coming in. On top of that, your vendors and other service providers may go out of business or want to renegotiate terms.
If your business is in the red and you’re not seeing a way forward, it may be time for a Chapter 11 bankruptcy. A Chapter 11 bankruptcy gives you the opportunity to reorganize your business so that you can pay your bills and protect your assets.
A nice thing about Chapter 11 bankruptcy is that it can help you keep your business open so that you can keep your employees and continue to operate your business. During the bankruptcy, you and your attorney will negotiate with your creditors. Debts may be reorganized by extending them, deferring them or through other means. Whatever agreements are decided upon do need to be approved by the court.
It’s possible that you may need to lay off some employees during your bankruptcy, but that’s not always the case. You may be able to reorganize wages, health care and other debts, but you may still be able to retain your employees, depending on the situation.
Your attorney will be happy to walk you through the benefits of a Chapter 11 bankruptcy as well as what to expect as you go through this restructuring. Our website has more on the kinds of bankruptcy that may help your business move forward and remain open.