Richard Banks & Associates, P.C.
free consultations
local: 423-244-0009
toll free: 866-596-8527
Practice Areas

Business & Commercial Bankruptcy Archives

Business bankruptcy can provide relief for a struggling business

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.

What options are available when a business is struggling?

This blog recently discussed a Tennessee company that was struggling, and other business owners may wonder what to do if they are in a similar situation. When a business is struggling with debt, it can be an overwhelming situation. The options available, and how they operate, can depend on the business structure and whether it is a sole proprietorship, partnership, LLC or corporation. When a business is behind on its debts, creditors may attempt to collect money that is owed and filing for bankruptcy can have an impact on what creditors are able obtain.

Bankruptcy can help struggling businesses

Business bankruptcy options can help Tennessean businesses recover from the struggles they have been facing. Chapter 11 business bankruptcy options are designed to help struggling businesses get back on their feet. In doing so, Chapter 11 bankruptcy provides the opportunity for the filing company to restructure its debts, while it continues to operate with the goal of returning to profitability once again.

The ways commercial bankruptcy can help a business

There are different types of commercial bankruptcy with different benefits tailored the different financial circumstances businesses may find themselves in. A Chapter 11 reorganization bankruptcy, for instance, can provide breathing room to a struggling business so it can reorganize its debts and get back on its feet once again. Alternately, a Chapter 7 liquidation bankruptcy can shore up losses and protect the owner of a small business.

What do I do when my business is failing?

Whenever a business experiences financial difficulties, and is failing, it is an unpleasant experience for the business owner who has likely placed significant time, money and emotional resources into the business. If the business is struggling, they may wonder what their options are. Commercial bankruptcy is one option to consider for helping the business out of the difficulty it is facing. In general, there are two types of business bankruptcy available for struggling businesses.

Logan's Roadhouse emerges from business bankruptcy

This blog discussed the Logan's Restaurant business bankruptcy filing earlier this year and the option for struggling businesses to utilize the commercial bankruptcy process as a way to return to profitability. Logan's Roadhouse restaurant chain, headquartered in Tennessee, recently announced that it is emerging from business bankruptcy. Following the commercial bankruptcy process, the restaurant chain is now smaller and has less debt.

Options for when a business is struggling

It can be overwhelming to have a business that is struggling with debt month after month. It can create anxiety and concerns about creditor actions and the future of the business. What actions creditors may be able to take against the business or against the business owners largely depends on the structure of the business; however, debts such as tax debts are not impacted by the structure of the business, and the business owners can be liable for those debts. Filing for business bankruptcy can also impact creditor actions.

Two Tennessee long-term care facilities enter business bankruptcy

Two long-term care operators in Tennessee recently announced that they are voluntarily filing for Chapter 11 bankruptcy protection. The long-term care companies will continue to operate the businesses as debtors in possession during the reorganization bankruptcy. They will retain the same management and staff to continue to run the businesses and provide for residents. In a statement, a representative announced a commitment to continuing to provide high-quality care to residents.

Business bankruptcies continue to increase year-over-year

Business bankruptcy filings increased by 21 percent in October for United States businesses when compared to the same month a year ago. There were a total of 3,023 business bankruptcy filings in the U.S. in October of 2016, while the number of business bankruptcy filings for 2015 was 2,491. October of 2016 also marked 12 consecutive months in a row that saw a year-over-year increase in business bankruptcy filings.