The changing economy can take its toll on businesses of all sizes. Unfortunately, weathering a changing economy can be difficult, especially for small businesses that have little room for error. Some businesses become stuck in debt and the financial stress can seem overwhelming for business owners.
Struggling business owners should consider all available legal options for resolving their situation. With the right solution, you can save your business. Chapter 11 bankruptcy is an option to consider.
Is Your Business in Trouble?
While businesses can correct some difficult financial issues, other types of problems may be more difficult to solve without assistance. If you notice these warning signs, call an experienced Kansas City business bankruptcy attorney.
- Cash flow crisis
- Personal assets at risk
- Large amounts of debt
- Sales in decline
- Employee layoffs
Can Chapter 11 Bankruptcy Save Your Business?
- Restructure Payments. Chapter 11 bankruptcy allows businesses to restructure payments on debt obligations. Creditors are often willing to work to find a more favorable repayment plan.
- Reject Unfavorable Contracts. Restructuring payments allows businesses to reexamine current contracts and obligations. You may reject or assume contracts and unexpired leases during this time. For example, suppose you pay above-market rent on a lease. During Chapter 11 bankruptcy, you may be able to reject that contract for a more favorable one.
- Continue Operations. Chapter 11 bankruptcy allows businesses to continue operations. It will stop collection activity and active litigation. This gives businesses time to regain control of their financial situation.
- Lengthy Repayment Options. Chapter 11 repayment plans may last for 10 years. This gives businesses the time they need to settle their debts and continue growing.
- Another Chance. Chapter 11 bankruptcy can save your business. Businesses can turn their attention to correcting issues. This might mean rebranding or hiring new staff. With time to pay off debt and the right support, business owners can improve the quality of their products and services.
A Kansas City Business Bankruptcy Lawyer Can Help Save Your Business
Are you a struggling business owner? Chapter 11 bankruptcy may help you save your business and get back on track. When considering bankruptcy, it is important to understand the process. That is why it is important to speak to an experienced Kansas City business bankruptcy attorney at The Sader Law Firm. Our attorneys have the experience and resources to help businesses through the bankruptcy process. To learn more about your bankruptcy options, we encourage you to contact us. Call us at (816) 281-6349 or fill out our confidential contact form to schedule a consultation.