If your business is struggling financially, it’s common to feel overwhelmed. Whether you’ve taken out a personal loan to keep your business running or you’ve delayed paying your taxes, the knowledgeable attorneys at Ferguson Legal Group, LTD, are here to help. We understand what you’re going through, and we’re committed to working with you and your business to determine the most strategic path forward.
Many businesses are surprised to learn that filing for bankruptcy does not automatically mean you will lose your business. Instead, Chapter 11 bankruptcy relief allows you to reorganize your business debts and gradually pay the debt off over a specified period. Once you file for Chapter 11 bankruptcy, the court will issue an “automatic stay,” preventing most creditors from hounding and harassing you. You will finally have some breathing room to assess your finances and develop a payment plan to help you gain more control over your business.
While other types of bankruptcy filings require a bankruptcy trustee to step in and oversee your property and the repayment of certain debts, Chapter 11 allows you to continue running your business while you pay off your debt. Chapter 11 involves creating a reorganization plan that enables your business to remain open during the entire bankruptcy process. You’ll work with creditors and the court to establish a repayment plan that may include modifying interest, payment due dates, or other terms as you gradually pay off the debt your business owes. Once all parties approve the plan, it becomes a contract, and the debt is discharged.
The first step you’ll need to take is to file a petition in bankruptcy court. While you continue to run your business, the bankruptcy court will consider your request and work with creditors and other parties to determine the most appropriate course of action. Then, once you and the creditors have worked out a reorganization plan, the court will issue its formal approval, provided the plan is feasible, proposed in good faith, and remains fair and equitable. Ultimately, the goal of Chapter 11 bankruptcy relief is to help your business continue to move forward while you gain greater control over the financial health of your business.
At Ferguson Legal Group, LTD, we understand how overwhelmed you may feel by the prospect of filing for bankruptcy. We’re here to answer your questions, address your concerns, and help you determine the most successful strategy to keep your business running. We are here to provide support and guidance during each phase of the filing process, working hard to make sure you and your business can move forward with confidence.