Challenging economic times can have an impact on Tennessee businesses and individuals, which is why legal options, including bankruptcy are available to help. Businesses may struggle with reduced sales, declining profits and tax burdens that make running what was once a successful business a struggle. The burden of financial challenges can be overwhelming. Chapter 11 bankruptcy is a debt relief option specifically designed for the needs of businesses.
Chapter 11 bankruptcy is a business bankruptcy option that allows a struggling business to reorganize its debts with the intention of remaining in business and returning to profitability. Provided the business is able to generate enough revenue to meet its obligations under the reorganization plan, the Chapter 11 bankruptcy process typically allows the business to remain operational and the management to continue to operate the business.
Any overwhelming debt situation can create anxiety. In situations when a business is struggling, business owners may worry about foreclosure and repossession of company equipment or company cars. Fortunately, once the filing party files for bankruptcy, an automatic stay goes into effect, which prevents creditor collection actions during the process. The stay can be an important phase in the process that can help a struggling business get back on its feet.
There is a lot to know to successfully navigate the business bankruptcy process successfully. Because it is such an important resource for struggling business owners to consider, it is helpful for them to be adequately educated concerning the process and understand the benefits for their business and their unique situation.