Bankruptcy is often viewed as an end, a process of last resort for people and companies that are drowning in insurmountable debt. However, for individuals and businesses right here in Tennessee and throughout the rest of the country, bankruptcy can actually offer something different: a positive and new beginning.
Take, for example, a business's utilization of Chapter 11 bankruptcy. Under a Chapter 11 bankruptcy filing, a business may take the time it needs to create a plan for profitability. Such a plan may involve finding ways to save money on operations so that the business can more effectively pay off the loans it has with its creditors.
An out-of-state company has found the positive aspects of undertaking the Chapter 11 business bankruptcy process. It has been able to keep its doors open and maintain its operating schedule despite its involvement in the bankruptcy proceedings. The business engaged in the legal process due to its realization that it simply was not going to be able to get out from under its debt burdens without some sort of significant assistance.
Individuals can also find debt relief and new financial beginnings through bankruptcy. Chapter 13 bankruptcy provides private individuals with the ability to reorganize their debts in such a way that they can pay back what they owe to others. Chapter 11 bankruptcy and Chapter 13 bankruptcy are both legal methods of moving out of tough financial situations and into more workable economic environments.
Bankruptcy does not have to mean the end of a business or the end of a person's life as he knows it. It can actually provide a corporate or private person with the tools it needs to start over as a stronger entity. To learn more about opportunities through bankruptcy, readers of this blog may choose to contact legal professionals who work in the bankruptcy field.
Source: tulsaworld.com, "The business of bankruptcy," Casey Smith, Aug. 23, 2015