Chapter 11 Bankruptcy
Can Your Business Benefit From Chapter 11 Bankruptcy?
Chapter 11 reorganization of a small business's finances in bankruptcy isn't for everyone. Chapter 11 can be slow, expensive, cumbersome and frustrating — and that's when it's working well. When it's going badly, or shouldn't have been started in the first place, the path from debt reorganization to liquidation in Chapter 7 can be a very quick one.
For some businesses facing certain kinds of debt pressure, however, Chapter 11 represents a great opportunity for protecting the value of your company that exceeds the mere sum of its assets. It also gives you a chance to emerge from bankruptcy with less debt and your employees' jobs intact. To learn whether filing Chapter 11 can give your company a reasonable chance of turnaround, contact a lawyer at the Peebles Law Firm in Winston-Salem.
Call 866-674-4072 for advice about Chapter 11 in North Carolina
The ultimate goal of Chapter 11 is to get confirmation of a plan of reorganization that will keep your company alive and operating. There's a strong chance that some of your creditors will become part of your equity structure. You might also get the chance to sell your business in Chapter 11 as a going concern.
What makes Chapter 11 so difficult is the need to find ways to meet the interests of a wide range of stakeholders: secured creditors, state and federal tax authorities, landlords, subordinated lenders, unsecured creditors and equity participants. Either a significant forgiveness of debt or a substantial infusion of capital is usually necessary to give Chapter 11 a fighting chance if your business faces a variety of financial pressures.
For small businesses, Chapter 11 can work if your main financial pressure is coming from just one or two directions. Chapter 11 can buy you the time you need to work out problems with a commercial lessor, a secured creditor, a judgment lien holder, or even the IRS.
For a free consultation about the likelihood that Chapter 11 can help your business survive a financial crisis, contact an experienced bankruptcy attorney at the Peebles Law Firm in Winston-Salem.
