Can I Run My Business During Chapter 11 Bankruptcy?
If you file for Chapter 11 bankruptcy, there’s some good news. Not only can you gain an opportunity to reorganize your company’s debt and operations, but you can also remain in control during this process.
That said, business owners must adhere to certain regulations to take full advantage of this bankruptcy protection. Companies need the court’s permission to make any significant changes to their operations, such as closing or relocating branches. This is to protect the interests of a company’s creditors and provide their interests with fair consideration. Additionally, companies must demonstrate that they are continuing to conduct business in a financially responsible manner and are making an effort to adhere to the restructuring plan.
When Should I File for Chapter 11 Bankruptcy?
Generally speaking, if your company’s financial obligations have become overwhelming and you are unable to make payments on your debts, then filing for a Chapter 11 may be an appropriate option. Additionally, if it is clear that a reorganization of your debt would be beneficial in order to free up more capital to pay off your debt or enable you to restructure it in a way that is more manageable, this could also be an appropriate solution.
It is important to note that filing for Chapter 11 bankruptcy can have a significant impact on your credit score and should not be taken lightly. If you are considering this option, it’s critical to consult with an experienced bankruptcy attorney who can assess your financial situation and advise you on the best course of action.
Your attorney can explain the process in full and discuss any potential risks or consequences that may arise from Chapter 11. Additionally, they can provide guidance on how best to move forward with your debt in a way that is beneficial for all parties involved.
Contact Us for Help with Bankruptcy
At Buchalter & Pelphrey Attorneys At Law, we understand the challenges that business owners face when it comes to filing for bankruptcy. Our experienced attorneys are here to help you through every step of the process and provide you with advice on how best to move forward.
We can assess your specific situation and determine what type of bankruptcy would be most beneficial for you. We have extensive experience in Chapter 11 reorganization, Chapter 7 liquidation, and other bankruptcy options.
No matter what type of bankruptcy you are considering, Buchalter & Pelphrey Attorneys at Law can provide you with the legal guidance and representation you need.
Contact us today to help your company start on a better path.