Businesses are not immune to challenging financial times. A decline in sales and profits, as well as tax challenges, may present significant difficulties for a number of companies struggling to stay in business. Business and commercial bankruptcy options are available to help struggling businesses and professionals faced with tough economic times or other financial challenges. Whatever led to the circumstances the business or professional is facing, reorganization bankruptcy options may be available to help them through it.
Chapter 11 bankruptcy is a reorganization option that can provide a business with the option to remain in business and to become profitable once again. Many businesses are able to remain in business during the Chapter 11 bankruptcy reorganization process by meeting the financial obligations according to the bankruptcy reorganization. Chapter 11 bankruptcy provides a process to reorganize debts so that obligations can be met without having to close a business.
Small businesses and professionals, including lawyers, doctors and dentists, can benefit from the reorganization option provided by the Chapter 11 bankruptcy process. In addition, farmers can seek relief through the Chapter 12 bankruptcy process. Struggling businesses may face alarming concerns related to the repossession of equipment or foreclosure of certain properties. Once a Chapter 11 bankruptcy petition is filed, a stay goes into place preventing creditors from pursuing collection actions while the bankruptcy process is pending.
Chapter 11 bankruptcy can be complex so it is important to understand the options and process and have the proper guidance throughout. Bankruptcy options are available to businesses and professionals to provide help as they focus on keeping their doors open.