It can be disheartening to be in a position in which you are unable to pay your bills and maintain your financial responsibilities. A few missed payments can quickly turn into a debt burden that your company is no longer able to manage on its own, and it may be necessary to take other steps to pursue more stability and security for your company. One of the options available to you is Chapter 11 bankruptcy, which is also a type of reorganization bankruptcy.
If you opt to file for bankruptcy for your company, it is in your interests to learn about what that will mean for your financial future. By taking this step, you may be able to reorganize your debts, preserve your ownership of your business assets and lay the foundation for strength and stability going forward. Debt doesn’t have to mean that your business can no longer operate, become profitable or succeed long-term.
A better financial future
Chapter 11 bankruptcy is often a beneficial choice for financially struggling businesses because it allows the companies to remain in operation throughout the bankruptcy process. This option will rearrange your company’s debt in a way that will allow you to make reasonable payments and meet some of the requirements set forth by your creditors. After filing an application for Chapter 11, the court will help your business restructure your debts. You will have the option to keep your doors open.
If you are considering this option for your business, it may help to know many other successful businesses have done this in the past. Chapter 11 could be a practical step forward that will allow you to secure your future. You will have the option of proposing a debt reorganization plan after you file, and you will need to adhere to the terms of your court-approved plan.
A better future for your business
Chapter 11 may be the most beneficial and effective way to keep your business while also meeting your financial obligations. If you are struggling with debt and maintaining your payments, you may benefit from seeking an explanation of your legal options. This can provide you with the insight necessary to make the best possible decisions for the future of your Maryland business.