Are you a Small Business Owner considering filing bankruptcy? If your business has been hit hard by the shutdown, or may be otherwise struggling, a no charge debt analysis with Daniels Associates can help you to understand your rights and create a plan of action. A 15-minute phone call could change your outlook. Call 502.583-8300 today.
If this is the first time you have considered a small business bankruptcy, you may not know your options. There are several bankruptcy chapters available, but a Chapter 11 reorganization is available to individuals and businesses. Due to the higher court fees, reporting requirements and legal fees involved in a Chapter 11, it is seldom used by individuals. However, this has changed with Congress’s passage of a Chapter 11 designed for small businesses. This may provide individuals and businesses a new opportunity to reorganize their debts and make arrangements to pay all of a portion of the debts and save their business.
One advantage of choosing a Chapter 11 bankruptcy over a Chapter 7 bankruptcy is that it allows you to continue to operate your business, restructure and reorganize, and if all goes as planned, recover from your financial difficulties. In most cases, you are allowed to maintain control over the operations of your business without the appointment of a bankruptcy trustee.
Once the business has fulfilled the terms and conditions of the reorganization plan by repaying its creditors as agreed, the case can be closed, and the business can take back unfettered control. The Chapter 11 bankruptcy process can take several months or longer to complete – – there is no hard time limit on the duration of a case, and the timeline will be different for each case depending on the filer’s specific circumstances.
Please consult with us on a free call to see if this option might be right for you.