If your business is facing financial hardship, you’re probably trying to find a way to alleviate your debt obligations and return to stable operations. It’s not an easy task, but you might be able to leverage the bankruptcy system to your advantage by pursuing a Chapter 11 bankruptcy. Before you do so, though, you’ll need to make sure that you’re prepared for the bankruptcy process, which may include doing each of the following:
- Developing a list of assets and liabilities
- Tracking your income and expenditures
- Creating a clear snapshot of your business’s financial standing
- Gathering all existing contracts and leases
- Thinking through what sort of reorganization will put you on the path to financial stability
- Figuring out what you need to continue to run your business as normal
- Considering whether a new legal structure is appropriate for your business
- Identifying a communication strategy that protects your business’s reputation and goodwill
Timing and thorough preparation are key to successfully pursuing Chapter 11 bankruptcy and its various phases. That’s why you need to be diligent and thorough before you take your first steps in filing your case.
Is Chapter 11 bankruptcy the best option for you?
As a struggling business, you have various bankruptcy options at your disposal, each of which may provide you with very real debt relief. However, you have to make sure that you fully understand your options so that you can choose the one that’s best for you and your business.
If you want to learn more about how to appropriately navigate the bankruptcy process, now may be the time for you to discuss your circumstances with an attorney who is dedicated to this area of the law.