How Bankruptcy Helps Small Business
Small businesses that choose to file Chapter 11 bankruptcy have an opportunity to get their financial affairs in order, reduce and get a fresh financial start. Many businesses think of bankruptcy as an end to their dream; but Chapter 11 bankruptcy is not an end to their business but rather an end to the debt troubles that are preventing their company from prospering.
Below are a few other ways that Chapter 11 bankruptcy can help small business owners:
- Chapter 11 bankruptcy will stop creditors from seizing assets while the bankruptcy case is underway. Small business owners in Chapter 11 bankruptcy will be given the opportunity to come up with a solution that will repay creditors and allow them to sustain their business. During this process, creditors will not be allowed to pursue collections against the company in bankruptcy.
- Chapter 11 bankruptcy gives business owners the breathing room they need to reassess their business and find out what is working and not working. Many companies in Chapter 11 bankruptcy have the leverage to completely reorder their operations and get rid of dead weight, whether it's excess staff or processes that are wasteful and ineffective. It is very difficult to tweak a business while under the threat of creditor lawsuits that's why it's beneficial that bankruptcy gives business owners a little piece of mind so that they can tend to their business.
- Filing Chapter 11 bankruptcy will give many businesses access to financing that might not otherwise be available. Many lenders make a business of investing in Chapter 11 bankruptcy companies. This financing allows business owners to continue operating their business while formulating a bankruptcy repayment plan for creditors.
Considering Bankruptcy? Set up a Free Consultation Today
To find out more about Chapter 11 bankruptcy and what it can do for your business speak with you can set up a free consultation by calling us or filing our or contact form .