It's no secret that it's tough to be a small business today! With the decline in brick and mortar retail, threats of larger companies and their buying power and the change in consumer buying habits - these are all aspects of larger retail trends that can greatly impact small businesses. This isn't always controllable for a business to absorb these challenges without negatively impacting the business. This can quickly lead to debt if sales slough for a period of time.
It may be time to consider Chapter 11 bankruptcy for debt relief for your business. Chapter 11 is different from other bankruptcy options in that it is a reorganization of debt. Chapter 11 allows the debtor to propose a business plan for profitability post-bankruptcy. This plan may include trimming costs and seeking new sources of revenue or income, which in turn can hold creditors off, temporarily.
The end goal of filing Chapter 11 is to find a way for a business to become profitable again. At Levin and Levin LLP, we know how this priority trumps any other that a business might have in filing Chapter 11. We're here to guide those whose business has come on hard times to find a resolution for them, their business and their creditors. The goal is to pay creditors, just not at the same pace/amount that they may be currently obligated.
Debt relief can come in a variety of ways. For a business, Chapter 11 debt relief is an attractive option. It can buy a business some time in paying their creditors. It allows them to collect themselves after a particularly trying time in business.