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Bankruptcy Reorganization Could Save Your Business

A Chapter 11 bankruptcy is used to restructure your business debt. If you do not have sufficient cash flow to pay your bills when they become due, then a Chapter 11 bankruptcy may be right for you. Small businesses some times experience financial difficulties which may result from an unexpected event such as COVID19. When this occurs you be unable to pay your creditors. A Chapter 11 bankruptcy filing may save your business in such a situation.

Business usually file a Chapter 11 bankruptcy. However, it could also be filed by individuals who have large amount of secured debts. For instance, if you are an individual with multiple properties with large amount of unpaid mortgage, a Chapter 11 bankruptcy filing may be right for you. It is important to consult a bankruptcy lawyer before deciding what kind of bankruptcy if right for you.

A single creditor may be threatening to enforce the terms of an unpaid loan or a judgment against you. This could force you to go out of business. It could also result in the liquidation of your assets to satisfy the debt.

Chapter 11 Bankruptcy Reorganization Plan

With Chapter 11 reorganization, you can retain control of your small business while restructuring your business affairs. The restructuring takes place through a chapter 11 reorganization plan.

A reorganization plan allows you to repay your debt using future cash flow. It gives you an opportunity to survive the tough times and get a fresh start. When business is bad small businesses reply on business bankruptcy to survive.

Signs that a Business Bankruptcy may be right for you

1. You are running out of cash to pay your debt
2. Your creditors are threatening to take you to court for delinquent payments
3. You expect positive cashflow in the future
4. You want to maintain control of your business