When Should My West Palm Beach Business Consider Chapter 11 Bankruptcy?
There may come a time when your West Palm Beach business falls on hard times financially. After all, many of the major businesses in America today have filed for Chapter 11 bankruptcy. One of the options many business owners consider is filing Chapter 11 bankruptcy to reorganize the debt it has accrued in order to continue doing business. The issue often is knowing when you should file Chapter 11 bankruptcy for your business. Today, the bankruptcy attorneys at Kelley Kaplan & Eller will show you when Chapter 11 is a viable solution.
What is Chapter 11 Business Bankruptcy?
Chapter 11 bankruptcy is a legal process much like Chapter 7 or 13, but for businesses in need of debt relief. It is essentially a reorganization of the business. Chapter 11 allows the business to reorganize debts instead of starting over fresh like consumers who have debt would do when filing for Chapter 7 bankruptcy; Chapter 11 allows a business to continue during and after reorganization, while a Chapter 7 is a liquidation of assets and closing of the business to pay off creditors.
The process for filing Chapter 11 bankruptcy is a long one. However, changes will take place on February 19, 2020, due to the Small Business Reorganization Act, also known as House Bill 3311 (HB 3311).
There are several regulations to follow when it comes to filing Chapter 11 Bankruptcy, as in any legal proceeding. Keep in mind, if you have a business and you have a bankruptcy discharged in the previous 180 days, you are not eligible for Chapter 11.
Signs that Indicate it’s Time to File Chapter 11 Business Bankruptcy
The best sign that tells you it’s time to file Chapter 11 bankruptcy is when your business debts become unbearable and you can no longer manage them. When the business consistently owes more than the income it generates, you, as the owner, should strongly consider Chapter 11 bankruptcy.
A Chapter 11 business bankruptcy will allow you to reorganize the business debts, pay your creditors and remain in business. It is often a misconception that a bankruptcy is the death of a business, and instead it can be a cleansing or a rebirth.
Small business debt can provide significant roadblocks to be successful your business. It is important to seek wise legal counsel and discover all applicable options for your unique situation.
Seek Help from an Experienced Chapter 11 Bankruptcy Attorney
Understanding the ins and outs of a Chapter 11 bankruptcy can be difficult for anyone. When you’re overwhelmed, the requirements and rules can be a chore to process on your own, especially when you are still trying to run your business as well. This is why you should obtain sound advice from an experienced Chapter 11 bankruptcy attorney.
When You Need Help Filing Chapter 11 Bankruptcy For Your Small Business, Contact Our West Palm Beach Chapter 11 Bankruptcy Attorneys
If you’re looking to file Chapter 11 bankruptcy for your business, contact the West Palm Beach chapter 11 bankruptcy attorneys at Kelley Kaplan & Eller at 561-264-6850 for a consultation. We will thoroughly examine your circumstances and discover the best plan of action for you and your business. We will be right by your side when you want to save your business and restructure your assets so your business can continue to help grow our economy and your personal wealth.