Many Tennessee consumers and others throughout the country spend more time shopping online nowadays than visiting brick-and-mortar stores. A company in another state that owns two shopping malls says its establishments have experienced a significant decline in foot traffic, which has placed a great financial strain on the company. The executive vice president of the company has stated that a petition for Chapter 11 bankruptcy has been filed.
Chapter 11 enables business to continue as usual
Chapter 11 is a specific type of bankruptcy that many business owners use to restructure their payment plans when they’re unable to continue to meet their present terms of agreement with lenders. If a lender agrees to a proposed Chapter 11 plan, the business in question can remain open to the public while behind-the-scenes changes take place to help the owner pay back debt. A person who wishes to file for Chapter 11 bankruptcy must prove that he or she has a steady means of disposable income in order to make payments to lenders.
VP says changes were insurmountable
The executive vice president who recently announced company plans to seek federal protection through Chapter 11 bankruptcy says that both of the company’s shopping in malls in West Virginia experienced unresolvable financial issues due to a lack of in-person shoppers in the past year. He said that the bankruptcy plan will enable business to continue uninterrupted at both malls. In such cases, lenders and petitioners are able to customize a plan that best fits their needs to resolve debt and keep a business afloat.
There are often several bankruptcy options available
If a Tennessee business owner is considering filing for bankruptcy, he or she may benefit from speaking with an experienced bankruptcy law attorney in order to determine which specific option best fits his or her particular debt relief needs and ultimate financial goals.
Filing for bankruptcy not only can help resolve a financial crisis, it can also help lay the groundwork for a stronger financial future in many cases. Each type of bankruptcy carries its own eligibility requirements, and a person who does not qualify for one type might qualify for another. This is another reason it is helpful to speak with someone well-versed in bankruptcy regulations before filing a petition.