Tennessee residents who open their own small businesses understand the amount of blood, sweat and tears that have to be expended to get their enterprises off of the ground. Starting a business can be a labor of love that expends more time, energy and money than a person could ever contemplate. For these reasons, when a small business begins to struggle financially and is threatened with closing its doors, its owner may begin to search for responsible ways to keep the business’s door open.
Bankruptcy, and particularly Chapter 11 bankruptcy, can allow a business owner to achieve just such ends. Unlike Chapter 7 bankruptcy which forces a corporate or private person to sell off its assets through liquidation and ultimately start over with a clean slate, Chapter 11 bankruptcy presents a different option. Through Chapter 11 bankruptcy a business may reorganize its operations and debts so that it may responsibly pay off what it owes to its creditors while continuing to stay open.
Not all business owners are willing to close up shop when financial challenges threaten their continued success. Additionally, not all businesses will qualify for other non-bankruptcy debt relief options when they cannot fully pay their bills. As such, Chapter 11 bankruptcy and its reorganization principles can be just what a struggling small business needs to thrive.
Choosing the right debt relief or bankruptcy option can be difficult for a burdened business owner. However, bankruptcy attorneys can help their clients make responsible decisions about these important business matters. While not all business owners may be willing to close their businesses due to debt, others may not be prepared to handle the requirements of Chapter 11 bankruptcy on their own. Finding good help during such a critical stage in protecting a business’s future can be imperative to making the right decisions about bankruptcy.