Many Tennessee residents dream of escaping the corporate world and starting their own business. Nothing, they assume, could be more satisfying that working for yourself. While some entrepreneurs are able to create, grow and maintain successful businesses, the reality is that many fail in the first year. Running a business is a costly endeavor, and coupled with extreme competition, many companies are poised for failure. Bills pile up, and before you know it, you’re drowning in debt. Fortunately, there may be a solution for your overwhelming debt.
Owners of small businesses often have to work harder than those who manage larger companies. That’s because larger companies are often well-known, more established, and have a lot of people working for the company’s interests. They have a large stream of customers buying their products and services. Owners of smaller companies have to work continuously to keep their businesses afloat – and sometimes this still isn’t enough. There are generally three types if bankruptcy to choose from to solve your debt dilemmas: Chapter 11, 12 and 13.
Chapter 11 can reorganize a business so that it stays open. If you have enough revenue, you can work with creditors to create a repayment plan that works on your terms and allows the business to remain operational. Chapter 13, on the other hand, allows you to discharge most of your debts so that you can shut down the business if you so desire. This allows you to start anew. Chapter 12 is a special type of bankruptcy available for those who work in agricultural and farming industries.
Business bankruptcy might help you solve your money woes and move you into a new direction. Whether you want to keep your business and come up with a plan for reorganization, or shut down your business for good and start fresh, we have experience in handling those types of cases. Consider contacting us to learn more about bankruptcy and other solutions.