How Bankruptcy Affects Your Small Business
After spending years on your business, you may find yourself in a difficult financial situation with mounting debt. Moments like this can feel like the end for your business. Substantial debt does not need to mean it is time to close down the company. Bankruptcy can offer your business a new start.
At the Law Offices of Brian A. Barboza, we have helped many Santa Rosa business clients weigh debt relief options to determine which approach will best meet their future goals. We can provide needed representation throughout the bankruptcy process that will protect the company that you spent years and substantial effort building.
Why Should Your Business File For Chapter 11?
Reorganization through Chapter 11 bankruptcy allows a business to continue operations while paying down debt through a court-approved payment plan. It will also allow the business to handle the sale of assets rather than a Chapter 7 trustee.
A reorganization plan may involve a number of strategies to help a business return to profitability. These may include:
- Cramming down debts and stretching out debt repayment over time
- Pursuing new business ventures
- Liquidating/selling off certain assets
These are just a few of the options that may be pursued through Chapter 11 bankruptcy to help a business. If creditors are not willing to get on board or compromise, it turns into a very difficult situation. This is where having an experienced bankruptcy attorney is critical.
Did Creditors File Chapter 11 For The Business?
Chapter 11 bankruptcy can be filed by a business or by the creditors. If creditors filed Chapter 11 for your business, it is vital that you speak to an attorney about your case. These cases are complicated, and a lawyer can help protect your interests throughout the process.
Knowledgeable Counsel And Advice
With offices in Santa Rosa we can discuss whether Chapter 11 or Chapter 7 might be right for your business. Our first consultation is free of charge.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.