If you're a business owner or an individual with significant assets and you're burdened with heavy debt, then you may have a number of debt relief options, including Chapter 7 bankruptcy, Chapter 11 bankruptcy or out-of-court solutions. The reality is that businesses and individuals may go through numerous ups and downs in their financial lives, and if you're in a serious lull right now, then don't hesitate to explore every available option for returning to financial health and profitability.
If your business is having debt troubles and facing possible insolvency, then it is important to be aware of every debt relief option. While filing for bankruptcy is appropriate in many cases, debts can also be settled without going to court.
Most business owners, when they realize they have a dispute with another company, don't immediately say to themselves, "We need to take this to court; we need to litigate." For one thing, litigation can be a costly and time-consuming distraction from running a business. In many cases, with the right proactive legal planning, business owners can avoid the expense of going to court.
If you're a business owner with debt troubles, then you're not alone. The risks associated with running a business are high, and bankruptcy laws take that fact into account. Heavy debt obligations may necessitate filing for bankruptcy, but depending on your particular situation, you may have a number of options for out-of-court solutions.
There is always risk in starting or purchasing a business. If things don't go as planned and your business is facing insolvency, then the bankruptcy system in the United States provides options for a fresh start. Bankruptcy can be a key component in helping business owners keep their companies intact or move on to new opportunities.
If you own a business in California, then you probably have a reasonable expectation that at some point your company will be involved in a legal dispute. With the help of a business law attorney, you may be able to resolve the matter in a cost-efficient way without going to trial.
In one of our recent posts, we discussed a drug maker's decision to file for Chapter 11 bankruptcy protection, which provides the company with an automatic stay against creditor actions. While Chapter 11 certainly has its benefits, such as letting the filer continue operations while restructuring, business owners should be absolutely certain that bankruptcy is right for their particular situation.
A number of relief options are available for businesses with heavy debts. Depending on your financial situation and how your business is structured, there may be out-of-court solutions such as a negotiated settlement with creditors or debt restructuring. In other cases, the best option may be business reorganization through Chapter 11 bankruptcy.