What Are My Business’s Bankruptcy Options in Florida If I Want to Remain Operational?
Is your South Florida business currently struggling with debt but hoping to keep its doors open while finding a path toward ending debt? For most businesses that are under such circumstances, working with a bankruptcy lawyer to identify an appropriate type of reorganization bankruptcy is precisely what the business needs. Our West Palm Beach bankruptcy lawyers can tell you more.
Businesses Are Affected By Inflation
Inflation is high right now, and small and medium-sized businesses in South Florida are feeling the effects. Businesses throughout Florida, like consumers, are paying more for the products or goods they need in order to keep their companies running while, at the same time, many consumers are unable or unwilling to pay higher prices. The cost of materials is up, and utilities are costing more money. And according to Wolters Kluwer, “high inflation can make it hard for businesses to adjust to cost pressures.” In short, businesses, like consumers, are struggling due to inflation.
For some of those businesses, restructuring debt through a reorganization bankruptcy can enable the business to continue operating while also catching up on debts owed.
Options for a Business Reorganization Bankruptcy in South Florida
Regardless of whether your business is struggling financially due to inflation or other factors outside your control, you may be wondering about options for filing for bankruptcy that can allow you to remain operational while also providing you with a way of managing your debt. For businesses in this type of situation, there are several types of reorganization bankruptcy that might be appropriate. All reorganization bankruptcies allow businesses to remain open and operational during (and after) the bankruptcy case, and they offer an opportunity to restructure debt and to catch up on late payments with creditors.
In general, the following are types of reorganization bankruptcies that could be right for your company:
- Chapter 11 bankruptcy, which is the most common and general type of reorganization bankruptcy that is often filed by businesses;
- Subchapter V bankruptcy, which is a subchapter of Chapter 11 and is designed for smaller businesses with more limited debt; and
- Chapter 13 bankruptcy, which is a type of consumer reorganization bankruptcy but can be filed by a business that is structured as a sole proprietorship.
Contact Our West Palm Beach Bankruptcy Attorneys To Learn More About Filing Options Based on Your Business Structure
If your business is struggling but you want to obtain some relief from the debt your company is under while still remaining open and operational, there are multiple forms of reorganization bankruptcy that may be relevant to you. It will be important to discuss your business’s structure with an attorney since that can often determine your reorganization bankruptcy options, as well as other factors that can impact what types of reorganization bankruptcy your business can ultimately file. To find out more about filing for a type of reorganization bankruptcy in Florida and restructuring your business debts, you should reach out to an experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan Delaney & Eller, PLLC. Contact us today for assistance with your business bankruptcy case.
Source:
law.cornell.edu/uscode/text/11
