Debt can be all-consuming. It can be frustrating, wearying, and burdensome to be in debt. It can even cause your business to go under, thus ruining part of your livelihood. However, with the help of a business bankruptcy attorney in Topeka, KS, you may be able to get out of debt while maintaining your business.
Chapter 11 Bankruptcy
Owning a business can be stressful and financially taxing. When one debt comes in that you can’t pay, sometimes this can lead to a snowball effect, eventually amassing a pile of debts that you’ve fallen delinquent on. Rather than go at it alone or risk losing your business entirely, consider filing Chapter 11 bankruptcy with a reputable business bankruptcy attorney.
Chapter 11 bankruptcy is specifically designed with businesses in mind, especially small businesses. Filing for Chapter 11 bankruptcy means being willing to commit to reorganizing your business and submitting that reorganization plan to the courts. This offers the absolute best option for a company that cannot afford to meet their financial obligations.
How Does Chapter 11 Work?
Chapter 11 allows you to make a plan to restructure your debt. This is where a business bankruptcy attorney who has knowledge of the proceedings can particularly help. Often, these attorneys can help businesses get out of certain leases or contracts that are only adding to their burdens.
The reorganization plan allows businesses to keep their doors open and maintain operations while filing. While they operate, they are under the protection of the Bankruptcy Court. This is favorable because it offers flexibility in terms of dealing with and paying back creditors. Each business is granted a time period that they have to file their written reorganization plan. In this plan, they must explicitly state how they intend to bring their plan to life and complete it. During this time frame, collection efforts are stopped, allowing the business to run without risk of being harassed by creditors.
If your business is suffering, do not suffer in silence. Filing for Chapter 11 bankruptcy and working with an experienced business bankruptcy attorney such as John R. Hooge Attorney at Law, PA can help.