Running a business is a complicated affair. Even if your Indiana business was on an upward trajectory for some time, you may have started to have some struggles recently. Unfortunately, business issues can quickly cause financial disruption, and your company may be in trouble. You certainly do not want to shut your company’s doors, so what can you do?
Fortunately, qualifying businesses could utilize bankruptcy as a way to get their financial affairs back on track. Certainly, various factors can affect whether a company qualifies for bankruptcy assistance, but you may want to explore Chapter 11 to determine whether it could suit your circumstances.
Why Chapter 11?
Businesses could file for Chapter 7 or Chapter 13 bankruptcy in some cases, but often, those options better suit consumers or sole proprietorships. If you want to keep your company operational through and after bankruptcy, Chapter 11 could help restructure the business and prevent you from having to close up shop. Additionally, if you have a partnership or run a corporation, Chapter 11 is the best option of the three.
How can it help?
You may have struggled to come to terms with the fact that your company was floundering financially. Now that you feel ready to take action to address the issues, you want to ensure that the course of action you decide on will help. When it comes to using Chapter 11 bankruptcy, your company will create a reorganization plan to explain how you intend to handle your creditors and outstanding debt. Some options that could help include the following:
- Recovering assets
- Repaying a portion of the outstanding balances
- Ending contracts and leases
- Discharging certain liabilities
After creating the plan, your creditors will have the opportunity to vote on whether it seems acceptable. The court will also have to approve the plan, but if it seems fair, you will likely obtain approval. It is important to remember that it can take a considerable amount of time to create a viable plan and for it to obtain approval.
Who can help?
Chapter 11 bankruptcy cases are often complex, and you certainly do not want to put your company in any more jeopardy than it already faces. As a result, you may want to work with an experienced bankruptcy attorney who could guide you through the reorganization process, help you come up with a plan and explain how this process could benefit your company in the long run.