Business models are constantly changing to align with the ever-expanding growth of online shopping. Some businesses have made a successful transition into the new age, while others have not been so fortunate. Perhaps your company fell a little behind in this area, causing it to experience periods of financial difficulty. You might have multiple ideas on how to restructure it and move into the new era, but you could be financially unable to make the necessary changes.
If your business is facing an overwhelming amount of debt, yet you wish to keep it afloat, you are probably wondering about available outlets for assistance. To secure its longevity, you might consider filing for Chapter 11 bankruptcy, which can allow you to reorganize your business's finances while paying debts over time.
The process of Chapter 11 bankruptcy
If you have given a fair amount of thought to your options and you wish to explore bankruptcy, you are probably wondering exactly what to expect, and furthermore, how to proceed. There are several steps to the filing for Chapter 11 bankruptcy, which include the following:
- Petition: The first step is to file a petition for bankruptcy protection. This can shield you from creditors and allow you to remain operational while you form a plan to restructure finances. During this period, you will probably want to begin forming a plan to repay a certain amount of your business's debts.
- Plan: Next, you must set forth your plan to renegotiate and repay certain financial obligations. This plan must be reasonable and voted for by creditors, but it will likely consist of a lesser portion of debt compared to what you previously faced.
- Confirmation: Provided your plan is feasible and adheres to the law, the court may confirm it. Once this happens, debts that your business owed prior to confirmation that may not be listed in the plan may be discharged, and you will be responsible for upholding your end of the plan by adhering to all of its terms.
Before moving forward, you might also want to get familiar with U.S. bankruptcy laws, as well as any New York state laws that may apply to your situation. However, without previous knowledge in the area, you will likely find this challenging, prompting a need for legal assistance.
Assistance in the process
Although at first the process may seem straightforward, filing for Chapter 11 bankruptcy can be extremely complex. Since you probably don't want to enter the process alone, you could be in search of some much-needed guidance and assistance. You could speak with an attorney with experience in the intricate nature of bankruptcy for businesses. An attorney can go over the financial standing of your business with you and assist you in in pursuing the best outcome possible, which may help your business to prosper once again in time.