How Bankruptcy Can Benefit South Florida Small Businesses

If you run a small business in South Florida and are struggling with business debt, have you considered the possibility of a business bankruptcy? According to a study reported in PR Newswire and conducted by researchers at Brigham Young University, Harvard University, University of Chicago, and University of Toronto, small business owners do not consider bankruptcy often enough — even when it could benefit them significantly. The reason for this lack of consideration, the study suggests, is that a large percentage of small business owners — about one-third — self-report that they do not have “a good understanding of the bankruptcy system.”
Further, about two-thirds of small business owners report that it would be embarrassing to file for bankruptcy, while about 60 percent worry what family members or friends will think. Moreover, more than half of small business owners surveyed worried that “clients will be less willing to buy from a business owner who filed for bankruptcy.” Yet there is a disconnection between these fears and the reality of many business bankruptcy cases — especially reorganization bankruptcies. What are the benefits of business bankruptcy for small businesses in Florida? An experienced West Palm Beach business bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller can tell you more.
Businesses Can Restructure Debt and Build a Stronger Company
Reorganization bankruptcies for businesses can allow small businesses to restructure debt and to ultimately build a strong company. Reorganization bankruptcies for businesses are usually filed under Chapter 11, Subchapter V, or sometimes Subchapter 12. When a small business files for a type of reorganization bankruptcy, it can keep its doors open, continue to show customers and clients the same services and goods to which they had become happily accustomed, and can run a strong company at the end of the repayment plan terms.
Despite concerns among many business owners, customers and clients are not likely to cease relationships with a business going through a reorganization bankruptcy.
Businesses Can Catch Up on Debts
In a reorganization bankruptcy — including Chapter 11, Subchapter V, and Chapter 12 — businesses can catch up on debts owed to creditors and become current.
Businesses Can Make New Plans for Future Success
Through a reorganization plan, a small business in South Florida can work through a repayment plan in order to catch up on debts with creditors, as well noted above, and a small business can also reimagine a new plan for future business success. In filing for a reorganization bankruptcy, a business can make plans to bring in more clients or higher-paying customers for higher-cost goods, for example, or a small business can change its marketing approach.
Even if your business is struggling to the point that a reorganization bankruptcy does not seem feasible, it is important to remember that a business Chapter 7 bankruptcy can allow you to properly close the business and allow creditors to receive some of what they owe, while you can begin looking toward a new future and other ventures.
Contact Our West Palm Beach Bankruptcy Lawyers Today
If you own a small business in South Florida and are struggling with debt, filing a business bankruptcy may be a way of relieving the stress associated with your business’s financial problems, and it may even be a way of keeping your business running and catching up on debt. To find out more about bankruptcy options for your business, you should get in touch with one of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller. A lawyer at our firm can speak with you today about your circumstances.
Sources:
prnewswire.com/news-releases/small-business-owners-bankruptcy-education-enables-potential-use-reduces-stigma-301235975.html
law.cornell.edu/uscode/text/11