Struggling businesses may wonder where they can turn to help get their struggling business enjoy a profitable future once again. Chapter 11 bankruptcy is a resource that can offer potential benefits to struggling businesses that wish to remain in benefits.
Benefits of business bankruptcy
Chapter 11 bankruptcy is a restructuring process that allows the filing party to remain in business. Potential benefits of Chapter 11 bankruptcy can include:
- Avoiding total liquidation of the business and allows the business to continue to operate;
- Providing a greater amount of time for the business to develop and file a reorganization plan;
- Allowing for a reorganization of what does not work for the business; and
- Allowing for the business owner to retain control of their business.
The business bankruptcy process
The Chapter 11 bankruptcy process allows the struggling business to keep its doors open while it develops a reorganization plan that can reduce costs, seek new sources of income, temporarily postpone payment to creditors and pursue ideas for greater profitability. During the process, businesses can renegotiate leases, renegotiate contracts and partially repay debts or have debts discharged.
The business bankruptcy process can allow the opportunity for the struggling business to address its debt, what is not working and pursue options that can allow it to return to overall profitability. Businesses that are suffering but do not want to close their doors should be familiar with Chapter 11 bankruptcy and what is has to offer them to help address their situation and get back on their feet when they are experiencing a difficult time.