After you have finally achieved your dreams of owning your own business, the unthinkable happens: an unforeseen circumstance which causes you extensive financial difficulties.
When you’re dealing with financial problems, running your own business can be a tough job. In fact, it can be almost impossible to make ends meet in both your business and personal.
While it may seem like things are harder than ever, filing for bankruptcy for your business doesn’t have to be the end of the world. It can mean a new beginning for your company, and a chance for you to start over.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is the option for many businesses, corporations, and partnerships. In the state of Florida, filing for Chapter 11 bankruptcy means that you will be given the opportunity to reorganize your debts. It will also give you with some extra time to figure out how you can keep your company alive rather than closing its doors to debts.
Why is this option different?
You’ve probably heard of many different kinds of bankruptcy options, including Chapter 7 and Chapter 13. These particular options are ideal for individuals rather than businesses, but some individuals have been known to file for Chapter 11 bankruptcy based on their own, personal situations.
Chapter 11 is intended for businesses because it allows businesses and qualified individuals to hold their assets during the filing process rather than liquidating them.
What are the benefits of Chapter 11 bankruptcy?
Chapter 11 bankruptcy can be exactly what your company needs to keep itself afloat. Not only do you get to hold onto your assets during the filing process, but you can restructure your debts, in order to work out a plan that will allow you to pay back your debts back over time.
Unlike Chapter 7 bankruptcy, your debts are not going to be forgiven or discharged. Instead, the courts want you to do whatever you can to re-arrange your finances so that you can continue to keep your business alive, without drowning in your own debt.
Filing for Chapter 11 Bankruptcy
If your business is suffering from severe debt, it’s okay to ask for help. Filing for Chapter 11 bankruptcy doesn’t mean that you are giving up on your dreams; it simply means that you need a hand in reorganizing your finances so that you can continue to run your own business.
At the Law Office of Kelley Fulton Kaplan & Eller, we know how difficult it can be to file for bankruptcy, but with our experience and knowledge, we can find the best debt relief option possible. Contact us online or call us at 561-264-6850.