How a Chapter 11 Bankruptcy Can Create Financial Stability for Your Business
When a business in South Florida is struggling financially, the owners might shirk at initial discussions of bankruptcy because they have misconceptions about what a business bankruptcy entails. Indeed, many business owners assume that when a business files for bankruptcy, it must close its doors and liquidate any existing or remaining business assets. Yet this is certainly not the case in Chapter 11 bankruptcy filings. In fact, while Chapter 7 business bankruptcies do require companies to shut down and liquidate, Chapter 11 bankruptcy actually offers significant opportunities for businesses to regain financial control and to create financial stability for the future.
How can a Chapter 11 business bankruptcy filing help your company to create financial stability going forward? Our West Palm Beach bankruptcy lawyers can explain in more detail, and we can speak with you today about your business’s financial circumstances and bankruptcy options.
Financial Benefits in the Shorter Term
Chapter 11 bankruptcy has both short-term and long-term financial benefits for businesses that file. In the shorter term, a Chapter 11 bankruptcy gives the debtor business certain immediate financial benefits that help to pave the way for financial stability in the future.
First, your business can remain open and operational during the Chapter 11 case; you do not have to close your business. While you are going through Chapter 11 bankruptcy, your business will also benefit from the automatic stay (which will prevent creditors from continuing existing actions against you to recover debt or initiating new ones), and you may be eligible to obtain debtor in possession financing. In addition, you will develop a debt reorganization plan that will allow your business to get caught up on debts in the shorter term during the course of the bankruptcy case.
Financial Stability in the Longer Term
The process of debt reorganization or debt restructuring has benefits beyond the short term. It often allows businesses to develop a process for meeting debt obligations and rebuilding trust with creditors with whom the business will be caught up on debt. Going through a reorganization process also often allows businesses to streamline operations and to plan ahead for meeting debt obligations in the years ahead.
Many businesses come out of Chapter 11 with greater financial stability, and the ability to remain solvent and operational for years to come.
Contact Our West Palm Beach Bankruptcy Lawyers Today
Is your business grappling with financial difficulties? If you want to keep your business open and potentially gain financial stability for the future, you should consider the possibility of a Chapter 11 bankruptcy filing. One of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller can speak with you today to provide you with more information about Chapter 11 bankruptcy and to answer any questions you have. Once your business is ready to move forward with a reorganization bankruptcy filing, we are here to assist you at every step. Contact our firm today to find out more about how we can help your company to get on track financially in order to thrive in the future.
Source:
law.cornell.edu/uscode/text/11
