To reorganize something is to change the way in which it is managed or shaped. When it comes to reorganizing a business, this can include changing who is responsible for making decisions about the entity, modifying how the entity's money is invested or used, and augmenting or cutting back on the entity's operational scheme and workforce. With this in mind, Bradley County businesses that choose to use Chapter 11 bankruptcy to deal with their financial woes generally must create and submit plans for reorganization in order to successfully bring themselves out of bankruptcy.
There are number of requirements that businesses must meet in order to achieve a discharge of debt through the Chapter 11 bankruptcy process. According to the Internal Revenue Service, a business may not take on new debts as part of its reorganization plan, as further debt may not be economically advantageous to an entity already struggling with loans and bills. Additionally, a business may not move forward with a plan that does not account for important financial obligations, such as payroll requirements and pending taxes.
Creating a business reorganization plan can be challenging, and not all business owners have an idea of how to approach this complex process. Business owners always have the option of approaching local bankruptcy attorneys to discuss Chapter 11 bankruptcy, reorganization, and other bankruptcy options that may serve them. An attorney may be able to provide clarity, understanding, and guidance that allows an individual to successfully navigate the bankruptcy system.
Business reorganization plans must meet particular requirements when they are submitted under Chapter 11 bankruptcy. Readers of this post may find its information useful but should not rely on it as legal advice or guidance regarding business bankruptcy. Every bankruptcy case is different and should be assessed based on its own facts and needs.