Is Business Bankruptcy the End of Your Business?
As a business owner, has your company fallen on difficult times? Are you struggling to pay your employees while keeping the enterprise afloat? Worried about what the next month will bring? Bankruptcy may seem overwhelming, but declaring business bankruptcy may allow you to continue your business operations and provide you with a fresh start to put the enterprise back on the positive track.
Alternatively, consumer bankruptcy typically involves individuals or married couples who have incurred primarily non-business debt. Commercial bankruptcies that are available to companies include Chapters 7 and 11, although in some instances it may involve Chapters 13 or 12.
With the economy continuing to fluctuate, many business owners are worried about the future of their organizations. If you’re worried about your financial situation and long-term plans, then your solution may be to file for bankruptcy. Bankruptcy is worth looking into, even though bankruptcies in the United States decreased to 22,103 companies in the third quarter of 2018 from 22,245 companies in the second quarter of 2018, as noted by Trading Economics.
Business Bankruptcy Falls into One of Two Categories
When you declare bankruptcy, your case will fall into one of two categories: liquidation which is utilized in business bankruptcy with Chapter 7 or reorganization through business bankruptcy Chapter 11.
Business bankruptcy Chapter 7 involves the sale and distribution of your company’s assets to pay off loans to creditors. This process is relatively quick and leaves nothing remaining of the business.
For business bankruptcy Chapter 11, your business reorganizes its assets and debts through a court-approved legal document known as a Plan of Reorganization. Once approved, it allows your enterprise to take necessary measures to put itself back into a money-making position. While this does not fully exempt your company from its debts, you are able to keep some assets, create new interest rates for loans, and be excused from bad contracts. Reorganization bankruptcy depends solely on your company’s situation.
Get Professional Assistance Today!
If you’re interested in exploring a possible business bankruptcy, don’t wait, act now. For more information about the bankruptcy business law, call a business bankruptcy attorney and get professional help.
100 South Elm Street Suite 500
Greensboro, NC 27401
551 Monroe Street
Eden, NC 27288
Phone: (336) 623-4600